Oil prices edged down from multi-week highs in Asian trading on Wednesday after the previous session’s sharp rally on fears of supply disruptions in Iran, as investors assessed data showing a large build in U.S. crude stockpiles.

As of 20:18 ET (01:18 GMT), Brent Oil Futures expiring in March edged down 0.4% to $65.19 per barrel, while West Texas Intermediate (WTI) crude futures fell 0.5% to $60.87 per barrel.

Both contracts surged more than 2.5% on Tuesday, pushing Brent to an 11-week high and WTI to a 10-week peak, extending strong gains over four consecutive sessions.

Oil boosted by Iran supply risks

Tuesday’s advance came amid heightened geopolitical risk related to intensifying anti-government protests in Iran that have fuelled fears about future crude exports from one of OPEC’s largest producers.

Traders have priced in a significant risk premium on the prospect of supply interruptions.

U.S. President Donald Trump’s stance on the unrest added to market nervousness. Trump warned of possible military action if Iranian authorities continue lethal crackdowns on protesters and urged demonstrators to “take over your institutions,” saying on social media that “help is on the way.”

He has also threatened tariffs on nations trading with Tehran in an effort to isolate the regime, further stoking the geopolitical premium. 

US crude stocks jump above expectations - API

Against this backdrop of geopolitical tension, industry group American Petroleum Institute data released on Tuesday showed U.S. crude inventories rose by 5.3 million barrels last week, well above analysts’ expectations for a roughly 2 million-barrel build. G

asoline stocks climbed by about 8.2 million barrels and distillates by about 4.3 million barrels, underscoring ample supplies of refined products.

Focus now shifts to official U.S. Energy Information Administration figures due later on Wednesday for confirmation of crude and product trends.