WASHINGTON, June 9 (Reuters) - U.S. wholesale inventories

increased more than initially thought in April, likely

reflecting stock building to hedge against shortages and high

prices stemming from the war with Iran.

Stocks at wholesalers rose 0.6%, revised up from the 0.5%

gain estimated last month, the Commerce Department's Census

Bureau said on Tuesday. Wholesale inventories have now increased

strongly for three straight months.

The report followed an Institute for Supply Management survey

last week showing a measure of inventories at services

businesses hitting a 10-year high in May. The U.S.-Israeli war

with Iran, now in its fourth month, has disrupted shipments of

oil and other commodities, driving up prices.

The increase in wholesale inventories was led by a 0.9% jump

in stocks of long-lasting manufactured goods, including

professional equipment and electrical products.

Stocks of nondurable goods gained 0.2% as increases in

groceries and petroleum were partially offset by declines in

apparel and medication.

Inventories, a key part of gross domestic product, increased

3.6% on a year-over-year basis in April. Business inventories

had a neutral impact on GDP growth in the first quarter. They

have been drawn down for four straight quarters. The economy

grew at a 1.6% annualized rate in the January-March quarter

after slowing to a 0.5% pace in the fourth quarter.

Sales at wholesalers increased 2.0% in April after advancing

3.0% in March. At April's sales pace it would take 1.19 months

to clear shelves, the lowest since December 2013 and down from

1.21 months in March. The inventories/sales ratio was at 1.30

months in April 2025.

(Reporting by Lucia Mutiikani; Editing by Andrea Ricci )