Oil prices have stabilized following their largest surge in over a week, as traders closely watch developments in the Middle East and assess the impact of Chinese stimulus measures on global demand.

Brent crude is trading above $75 per barrel after a 1.7% jump on Tuesday, while West Texas Intermediate (WTI) is nearing $72.

Iranian President Masoud Bezhkian warned that Israeli attacks in Lebanon “cannot go unanswered,” and called on Western nations to return to the nuclear deal and lift sanctions on Iran.

China’s massive economic stimulus package, unveiled yesterday, provided a significant boost to global stock markets. However, it remains uncertain whether this will translate into increased energy demand from the world’s largest oil importer.

Despite these recent gains, crude oil prices are still slightly down for the year, weighed down by a sluggish outlook for the Asian economy and the potential for increased supply from OPEC+, which continues to pressure prices.

The group reaffirmed yesterday that global oil demand is expected to grow steadily through the middle of the century.

In the United States, the American Petroleum Institute reported a 4.34 million barrel decline in commercial crude inventories last week.

If confirmed by official figures later today, Wednesday, it would mark the lowest inventory levels since April 2022.

Meanwhile, Tropical Storm Helen has strengthened as it moves toward the Gulf of Mexico, prompting the evacuation of several oil and natural gas platforms in the region.