Oil prices fell on Wednesday after data showed US crude inventories rose more than expected, but Israeli attacks on Gaza and Lebanon capped losses.

Brent crude futures were down 50 cents, or 0.7%, at $75.54 a barrel by 0640 GMT. WTI Crude futures were down 50 cents, or 0.7%, at $71.24 a barrel.

Crude futures have closed higher in the previous two sessions this week.

The market continues to await Israel’s response to the Iranian missile strike, and Tuesday’s price strength is likely due to the lack of results from Blinken’s recent visit to Israel.

Israel also confirmed on Tuesday that it had killed Hashim Safieddine, the heir to the late Hezbollah leader Hassan Nasrallah, who was killed in an Israeli strike targeting the Iran-backed Lebanese militant group last month.

Market participants have priced in a longer Middle East conflict and a potential deadlock over the ceasefire agreement.

China’s latest stimulus efforts could lead to some success in stabilizing conditions or even a more sustained recovery, which could positively impact oil demand.

Meanwhile, U.S. crude inventories rose by 1.64 million barrels last week, according to the American Petroleum Institute (API) report on Tuesday, which also weighed on prices. Analysts expect a 300,000-barrel increase in crude inventories.

Official U.S. government oil inventory data is due on Wednesday at 1430 GMT.

Holding positions on either side of the market could be challenging, with oil prices moving from oversold to overbought territory in short periods.

Producers in OPEC+ expect oil prices to average $76 a barrel in 2025, based on moderate crude surpluses and spare capacity.