Oil rises on U.S.-Iran tensions, China demand eyed.

Oil prices advanced in Asian trading on Wednesday as investors monitored developments in U.S.-Iran relations and looked ahead to travel demand during an upcoming major holiday in China.

Crude rebounded from part of the previous session’s losses, supported by a softer U.S. dollar ahead of key economic data releases.

By 21:04 ET (02:04 GMT), April Brent futures climbed 0.6% to $69.18 a barrel, while WTI crude futures also gained 0.6% to $64.19 a barrel.

Oil prices rise amid US-Iran tensions over potential supply disruptions.

On Tuesday, Iranian officials stated that recent nuclear discussions with the United States helped Tehran assess Washington’s intentions, adding that diplomatic engagement between the two nations would continue.

The remarks followed talks held last week regarding Iran’s nuclear program, which came after U.S. President Donald Trump sent several warships to the Middle East.

Although both sides indicated some progress from their weekend negotiations, attention shifted after the U.S. issued a maritime warning for vessels passing through the Strait of Hormuz.

Media reports also suggested that Trump was weighing the deployment of a second aircraft carrier near Iran—a step that could significantly heighten regional tensions.

Amid the uncertainty, oil markets incorporated a risk premium, as traders grew concerned that potential military action might disrupt Iranian oil supplies.

China’s Lunar New Year travel surge draws attention as CPI data falls short of expectations.

Oil prices found some support on expectations of stronger Chinese fuel consumption during the upcoming Lunar New Year holiday.

This year’s Lunar New Year, marking the Year of the Horse in the Chinese zodiac, falls on February 17 and will be observed with an extended nine-day public holiday from February 15 to 23.

The festive period typically drives higher consumer spending in China, particularly in travel. Authorities project a record 9.5 billion passenger journeys during the spring holiday travel rush.

International travel is set to include several favored destinations across Southeast Asia, though flights to Japan have reportedly declined sharply amid escalating diplomatic tensions between Beijing and Tokyo.

Meanwhile, recent economic data signaled that deflationary pressures persist in China, as consumer price index figures came in below expectations and producer prices continued to contract.

Sources: Ambar Warrick