04.03.202600:41:20UTC+00Brent Halts Gains on US Naval Escort Plan

Brent crude oil futures were little changed around $81.50 per barrel on Wednesday, pausing a three-session advance, as traders evaluated a US proposal to provide naval escorts for tankers passing through the Strait of Hormuz. President Donald Trump announced that the US International Development Finance Corporation would insure vessels to help maintain the flow of energy and trade, with naval protection available if required. The initiative follows escalating disruptions after the closure of a key shipping route.

Uncertainty nevertheless remained elevated as hostilities entered a fifth day, with Israel mounting a broad wave of strikes against missile sites, air defense systems, and critical infrastructure. In parallel, Iraq, a major oil producer, has begun suspending operations at some of its largest fields, a move that could significantly curtail national output.

On the supply side, data from the American Petroleum Institute indicated that US crude inventories rose by 5.6 million barrels last week, following an 11.4 million-barrel jump in the previous week and far surpassing expectations for a 2.19 million-barrel build.