Quick overview

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Oil prices slightly increased at mid-week trading session after closing the previous session up over 4% due to concerns that the Iran-Israel conflict may disrupt oil supplies. Brent oil futures are trading at $76.64 per barrel, while West Texas Intermediate oil is trading at $75.07 per barrel.

President Donald Trump demanded Iran’s “unconditional surrender” on Tuesday as the sixth day of the Iran-Israel air war began.

According to three officials, the US military is increasing the number of fighter planes sent to the area to strengthen its forces.

Supply disruptions in the Strait of Hormuz, which transports a fifth of the world’s seaborne oil, remain a key concern for the market. On Tuesday, two oil tankers collided near the strait and caught fire.

The UK Maritime Trade Operations warned of the impact of electronic interference on ship navigation systems. Analysts suggest that other members of the Organization of the Petroleum Exporting Countries could use their excess capacity to offset a decline in Iranian output.

Iran is the third-largest producer of crude oil, extracting roughly 3.3 million barrels per day (bpd).

The Federal Reserve is expected to maintain its benchmark overnight interest rate between 4.25 percent and 4.50 percent. In July, the Fed may lower rates by 25 basis points, ahead of current market expectations, due to the conflict in the Middle East and the possibility of a slowdown in global growth..