Oil prices ticked up from multi-week lows during Asian trade on Wednesday as markets weighed the fragile ceasefire between Iran and Israel.
By 3 pm AEST (5 am GMT), Brent crude rose $0.82 or 1.2% to US$67.96 per barrel, while U.S. West Texas Intermediate (WTI) gained $0.85, or 1.3%, to $65.22.
The modest gains follow two sessions of losses, which saw prices drop by around 17.6%.
Oil had surged to five-month highs late last week following United States airstrikes on Iranian nuclear facilities, though intelligence reports suggest only limited damage was done.
However, U.S. President Donald Trump rebuked the claims on Truth Social, reiterating that the “nuclear sites in Iran are completely destroyed”.
Both nations signalled the air war had ended, following pressure from U.S. President Donald Trump to respect the ceasefire. Civilian restrictions have reportedly been lifted after 12 days of conflict.
"Assuming the Israel-Iran conflict doesn’t reignite... the focus is likely to return to the looming surplus later this year," ANZ analysts said, noting OPEC’s plans to accelerate output in July.
Investors are now awaiting official U.S. crude stockpile data after American Petroleum Institute (API) figures showed a 4.23 million-barrel decline last week.
