Oil prices decline amid potential fuel supply disruptions

According to Investing.com experts, after rising 4% during Tuesday's trading session, crude oil prices fell due to supply disruption risks stemming from the ongoing Middle East conflict. In a research note, Fitch analysts warned that significant damage to Iran's production or export infrastructure could exert further pressure on oil prices in the near term.

Brent crude dropped to $75.48 per barrel, while WTI fell to $72.14. Kelvin Wong, a senior market analyst at OANDA, expects WTI prices to rebound in the short run, citing escalating Middle East tensions.

Meanwhile, markets await the upcoming US Federal Reserve (Fed) meeting, where the central bank is expected to maintain its benchmark rate at 4.25–4.50%. IG analyst Tony Sycamore suggests the Middle East conflict could accelerate Fed policy easing ahead of market expectations. As noted in an Investing.com report, lower rates would likely stimulate oil demand.