Oil prices rose in early trading on Wednesday as concerns over escalating conflicts in both Europe and the Middle East outweighed fears about demand following reports of an unexpected increase in US crude inventories.

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Brent Crude Futures for August delivery rose six cents to USD 85.39 a barrel, while June contracts for West Texas Intermediate (WTI) crude climbed ten cents to USD 81.67 a barrel.

Both benchmark crudes had risen by more than a dollar in the previous session after a Ukrainian drone strike caused a fire at an oil terminal in a major Russian port, according to Russian officials.

In other escalations, “Israeli” Foreign Minister Israel Katz hinted at an imminent war with Hezbollah in Lebanon, even as the US tries to prevent the aggression between Tel Aviv and Hezbollah from widening.

The escalations in the region raise the potential for disruptions in oil supplies from key producers, according to CNBC.

However, further increases in oil prices were tempered by a report from the American Petroleum Institute (API), which indicated that US crude inventories rose by 2.264 million barrels in the week ending June 14.