Oil prices gain as Iran suspends cooperation with UN nuclear watchdog

Oil futures edged up on Wednesday as Iran suspended cooperation with the U.N. nuclear watchdog but a surprise build in U.S. crude supplies limited gains.

Brent crude was up 39 cents, or 0.6%, to $67.50 a barrel at 10:44 a.m. EDT, while U.S. West Texas Intermediate crude rose 31 cents, or 0.5%, to $65.76 a barrel.

Brent has traded between a high of $69.05 a barrel and low of $66.34 since June 25, as concerns of supply disruptions in the Middle East have ebbed following a ceasefire between Iran and Israel.

Iran enacted a law on Wednesday that stipulates any future inspection of its nuclear sites by the International Atomic Energy Agency needs approval by Tehran's Supreme National Security Council. The country has accused the agency of siding with Western countries and providing a justification for Israel's air strikes.

"The market is pricing in some geopolitical risk premium from Iran's move on the IAEA," said Giovanni Staunovo, a commodity analyst at UBS. "But this is about sentiment, there are no disruptions to oil."

Limiting gains on Wednesday, U.S. crude inventories rose by 3.8 million barrels to 419 million barrels last week, the Energy Information Administration said, compared with analysts' expectations in a Reuters poll for a 1.8 million-barrel draw. Gasoline demand dropped to 8.6 million barrels per day, prompting concerns about consumption in the peak summer driving season.