Oil prices edged higher in Wednesday's Asian trade, extending a record rally from March as ongoing Middle East tensions continued to drive volatility across energy markets.
Brent crude futures for June delivery rose $1.33, or 1.3%, to US$105.30 per barrel by 3 pm AEDT (4 am GMT), building on a historic 64% surge recorded over March.
U.S. West Texas Intermediate (WTI) crude futures for May delivery climbed $1.58, or 1.6%, to US$102.96 per barrel.
The gains came despite signs that the conflict between Washington and Tehran may be nearing a resolution. Prices recovered from earlier losses after unconfirmed reports suggested Iran’s president could be open to ending the war under certain conditions.
Further influencing sentiment, Donald Trump said the United States could conclude its military campaign within “two to three weeks”, adding that Iran would not necessarily need to formalise a deal to bring the conflict to an end.
The remarks marked one of the clearest indications yet that Washington is seeking to wind down hostilities.
However, even in the event of a ceasefire, supply constraints are expected to persist due to damage to critical infrastructure and ongoing uncertainty around key transport routes.
A central concern remains the Strait of Hormuz, a vital artery for global energy flows through which roughly 20% of the world’s oil and liquefied natural gas trade passes.
On the supply side, fresh data highlighted additional constraints. The Energy Information Administration (EIA) reported that U.S. crude production fell by 410,000 barrels per day in January to 13.25 million bpd, marking the steepest monthly decline in two years.
The drop, attributed to a severe winter storm, pushed output to its lowest level since February 2025.
