WASHINGTON (dpa-AFX) - Oil prices rose over 1 percent on Wednesday but held near multi-week lows on the prospect that crude oil flows would not be disrupted.
A U.S.-brokered ceasefire between Israel and Iran appeared to be holding but elsewhere, Israel's army said seven of its soldiers were killed in combat in Gaza, where the war with Palestinian militant group Hamas continued.
U.S. President Donald Trump's Middle East envoy said late on Tuesday that talks between U.S. and Iran were 'promising' and that Washington was hopeful for a long-term peace deal.
Benchmark Brent crude futures jumped 1.4 percent to $67.08 in European trade, after having slumped 13 percent over the past two days amid signs that Strait of Hormuz would stay open for now. WTI crude futures were up 1.5 percent at $65.35.
Today's uptick in oil prices comes after a tumultuous week for markets. Investors are buying the dips after industry data revealed a significant drawdown in oil inventories.
The American Petroleum Institute (API) estimated that crude oil inventories in the United States fell by 4.277 million barrels in the week ending June 20 while analysts had estimated a much more conservative 600,000-barrel draw.
Meanwhile, China has responded to U.S. President Trump's post about its purchases of Iranian oil, saying it would prioritize its national interests.
'China can now continue to purchase oil from Iran,' Trump said on Truth Social and once again changed his stance on regime change in Iran, hours after declaring the Middle East rivals had agreed to a ceasefire. The announcement surprised both oil traders and officials in his own government.
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