Oil prices ticked slightly higher on Wednesday as markets cautiously responded to a fragile ceasefire between Iran and Israel. This mild rebound comes after crude prices had plunged in the previous two trading sessions, driven by fears of escalating conflict in the Middle East.

Brent crude rose by 75 cents (1.1%) to $67.89 a barrel, while U.S. West Texas Intermediate (WTI) climbed 71 cents to settle at $65.08. Both benchmarks had earlier dropped to their lowest levels in weeks—Brent hitting lows not seen since June 10 and WTI falling back to levels last recorded on June 5—before the recent spike in geopolitical tensions.

The initial price rally was sparked by a dramatic U.S. airstrike on Iran’s nuclear facilities over the weekend. Although the strike sent shockwaves through the energy markets, U.S. intelligence assessments later revealed that the damage was limited, delaying Iran’s nuclear progress by only a few months.

As a ceasefire brokered by U.S. President Donald Trump began to hold, both Iran and Israel signaled a halt to active hostilities. Civilian restrictions were lifted, and each side claimed a strategic win after 12 days of airstrikes. Trump’s public criticism of both nations for violating the truce added diplomatic pressure to de-escalate.

Despite the calm, investors remain wary of the situation—especially the vulnerability of the Strait of Hormuz, a critical chokepoint for global oil shipments. Nearly 20% of the world’s crude and fuel passes through this narrow stretch between Iran and Oman daily, making it a major flashpoint in any conflict involving the region.

Traders are also closely watching domestic oil supply data in the U.S., due later Wednesday. Preliminary figures from the American Petroleum Institute (API) show U.S. crude inventories fell by 4.23 million barrels in the week ending June 20, potentially supporting prices in the short term.