Oil Prices Swirl Amid US-Iran Tensions and Inventory Drop: WTI $63, Brent $67

[Para 1: The Lead] Oil prices fluctuated as traders grappled with escalating US-Iran tensions and a significant drop in US crude inventories. Brent crude was trading above $67 per barrel, while West Texas Intermediate (WTI) was near $63. The geopolitical climate, marked by heightened tensions following the US downing of an Iranian drone and Iran's request for diplomatic talks to be moved to Oman, added volatility to oil markets. [Para 2-3: Supporting details & Context] US crude inventories fell by 11.1 million barrels last week, according to preliminary data from the American Petroleum Institute, potentially the largest weekly drawdown since June. This comes amidst ongoing geopolitical tensions in the Middle East, a region that supplies about a third of global crude. The situation has been further complicated by the US Central Command's report of Iranian Revolutionary Guard Corps' harassment of a US-flagged oil tanker in the Strait of Hormuz. Analysts estimate a $5-$10 per barrel premium for oil prices due to geopolitical risks, reflecting market anticipation of possible US military actions against Iran.