Oil prices climbed for a second straight session on Wednesday, 3 June, as renewed hostilities in the Middle East and stalled diplomatic efforts between Iran and the United States heightened concerns over global supply stability.

Brent crude rose to $96.81 per barrel, while West Texas Intermediate (WTI) advanced to $94.67, both reaching one-week highs after earlier gains.

Market sentiment was lifted by escalating tensions after Iran launched missiles toward Kuwait and Bahrain, prompting reported retaliatory strikes by U.S. forces, while negotiations aimed at de-escalating the conflict showed little progress.

Supply risks were further underscored by warnings of tightening global inventories ahead of peak summer demand, alongside data indicating continued drawdowns in U.S. crude stocks for a seventh consecutive week.

Traders also monitored developments around key shipping routes, including the Strait of Hormuz, where security concerns have kept vessel movements below normal levels amid ongoing regional uncertainty.