Oil prices rose nearly 1% Wednesday after U.S. President Donald Trump threatened ?to resume bombing Iran if it didn’t "behave", but remained near three-month lows as the International Energy Agency warned of excess supply next year.
Brent crude futures were up 0.9% to $79.68 U.S. a barrel early in the day and U.S. West Texas Intermediate rose 0.8% to $76.66. Both ?contracts hit their lowest since early March earlier in the session.
Trump said ?on Wednesday that a memorandum of understanding with Iran was not final, and that he could ?resume a bombing campaign if he did not like it or if Iran didn’t “behave”.
In its first look at 2027, the IEA said the oil market will enter a significant supply overhang, ?with ?global supply set to surge by 8 million barrels per day and demand rising by just two million bpd.
In the near term, the agency said the Iran-U.S. deal should provide an opportunity to replenish depleted inventories or build new strategic reserves.
The MoU, not yet public, extends by another 60 days a tenuous ceasefire agreed in April, to allow room for talks ?between the U.S. and Iran toward a permanent truce.
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