Muscat: Brent crude jumped nearly 2% on Wednesday, rising above $66 a barrel, while West Texas Intermediate hovered near $63. The gains mark a recovery from earlier this month when crude futures plunged over $10 on fears of global demand disruption triggered by President Donald Trump’s tariff threats.

The latest rally follows an aggressive move by the U.S. Treasury, which sanctioned China’s Shandong Shengxing Chemical Co. Ltd., accusing the so-called “teapot” refinery of handling more than $1 billion worth of Iranian crude. Treasury Secretary Scott Bessent reiterated Washington’s aim to apply “maximum pressure” and fully disrupt Iran’s oil supply chain.

Tehran pushed back, warning that nuclear talks with the U.S. could collapse if Washington continues shifting its demands.

Meanwhile, U.S. data added fuel to the rebound, revealing crude stockpiles at Cushing, Oklahoma — the delivery hub for WTI — fell by around 650,000 barrels, the lowest for this time of year since 2008.

Despite the momentum, market watchers remain cautious. The rebound is still modest compared to the sharp losses earlier in April. All eyes are also on OPEC+ efforts to rein in production. While Iraq and Russia have made limited progress toward their quotas, Kazakhstan’s oversupply backlog swelled by more than 40%, underscoring the challenges ahead.