Mubasher: Oil prices climbed on Wednesday to their highest since almost one month, as industry figures showed a bigger than expected draw in US crude inventories, giving markets a push, according to Reuters.

By 7:44 am GMT, US Nymex crude futures jumped by 1.87% to $58.91 per barrel (pb), having earlier hit $59.03 pb, the strongest seen since 30 May, while global benchmark Brent futures rose by 1.48% to $66.01 pb, a little above its highest level since 31 May.

Amidst mounting worries over a potential US-Iran confrontation, oil advanced mainly on the back of data by American Petroleum Institute (API).

US oil stockpiles fell by 7.5 million barrels in the week to 21 June to 474.5 million, versus expectations of a 2.5 million barrel decline.

“Oil prices have been squeezing higher on escalating tensions in the Middle East, [but] with late-day draws showing up in the API report, this is a strong signal for the energy market,” Vanguard Markets managing partner Stephen Innes was quoted by Reuters.

In addition, US President Donald Trump threatened on Tuesday to “obliterate” parts of Iran, if “anything American” was attacked, in a new war of words with Tehran which condemned a new bundle of sanctions against the country’s supreme leader and top officials.

Fears of supply disruption passing through the strategic Strait of Hormuz, as confrontation between Washington and Tehran gained a military dimension after Iran downed a US surveillance drone in the Gulf.

Earlier, the US accused Iran of perpetrating an attack on two oil carriers, which was denied by Tehran.

In a bid to mollify such worries, the head of national oil giant Saudi Aramco stated on Tuesday that the company could provide oil supplies to customers, using its spare capacity.