Oil futures jumped more than 4% on Wednesday following a Reuters report saying that the US embassy in Iraq is preparing to partially evacuate amid security threats.
West Texas Intermediate (CL=F) futures gained more than 4.5% to settle at $68.15 per barrel. Brent crude (BZ=F), the international benchmark, also jumped 4% to settle at $69.77 per barrel.
The surge came after the report citing US and Iraqi sources said embassy employees in Baghdad were preparing for an ordered departure because of heightened risks in the area.
Crude rose earlier in the session on supply worries after President Trump indicated during a podcast that he is less confident that Washington will reach a nuclear deal with Iran, a top oil producer.
“I don’t know. I did think so, and I’m getting … less confident about it,” Trump said.
Oil also gained after the US and China agreed to a framework and implementation plan to ease tariff and trade tensions following high-level talks in London.
President Trump signaled his approval, saying the deal was “done” pending sign-off from himself and Chinese President Xi Jinping.
Oil has rallied over the past month, following a sharp sell-off in April.
Year to date, West Texas Intermediate is down more than 4%. Brent is down about 6% during the same period.
Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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