Oil gains 1% on Iran restrictions and drop in US crude stocks

Reuters reports that oil prices grew almost 1% during early trade on Wednesday, adding to yesterday’s gains. Investors weighed new US restrictions on Iran, a decline in American crude stocks, and Donald Trump's softening stance on the Federal Reserve (Fed).

Oil rose after the US President backed off his intentions to dismiss Fed Chair Jerome Powell. Additionally, Trump signalled the possibility of lowering import tariffs on goods from China following a deal. Trade duties have weighed on crude prices as investors are growing more concerned about the slowdown in global economic growth, Reuters adds.

On Tuesday, the US introduced restrictions against Iranian businessman Seyed Asadoollah Emamjomeh and his corporate network, responsible for delivering oil and liquified petroleum gas to foreign markets, the news agency says. 

Meanwhile, the American Petroleum Institute (API) reported that crude inventories in the US fell by approximately 4.6 million barrels last week.