08:58 AM EDT, 09/10/2025 (MT Newswires) -- Oil prices rose early Wednesday on heightened geopolitical tensions, despite signs supply is climbing above demand and US inventory data showing another build.

West Texas Intermediate crude oil for October delivery was last seen up US$0.73 at $63.36 per barrel, while November Brent crude gained $0.69 to $67.08.

The gains follow rising tensions in the Middle East after Israel on Tuesday attacked senior Hamas members in Qatar, raising concerns over supply security as Prime Minister Benjamin Netanyahu's government expands strikes on Hamas and its backers in Iran.

"We see a heightened risk that Israel will launch another strike on Iran to deal an even more serious blow to its leadership and nuclear program ... Given that Israel has already targeted the Hamas negotiators in Qatar and assassinated the Houthi Prime Minister in Yemen in the last two weeks, we do not think the Netanyahu government will necessarily exercise serious restraint when it comes to their principal regional foe," Helima Croft, head of global commodity strategy and MENA Research, said.

Middle East turmoil typically prompts safe-haven buying, with the region supplying about a third of global oil production. But the backdrop of rising tensions comes as supply is set to climb and demand growth remains weak.

In its Short-Term Energy Outlook released Tuesday, the Energy Information Administration said it expects Brent prices to fall in the fourth quarter and early 2026 as OPEC+ output rises.

The agency forecast Brent declining from $68 in August to an average $59 in the fourth quarter of 2025 and around $50 in early 2026. Global oil inventories are expected to build by more than 2 million barrels per day from the third quarter of 2025 through the first quarter of 2026, before moderating as supply is cut later in 2026.

The American Petroleum Institute late Tuesday reported US crude inventories rose by 1.25 million barrels last week, the second straight weekly gain. Official data from the EIA is due later Wednesday.