Oil prices declined on Wednesday after a larger-than-expected increase in US crude oil stockpiles signaled weakening demand in the world's biggest oil consumer, while US President Donald Trump's decision to reinstate the 'maximum pressure' policy on Iran raised concerns over global supply.

The international benchmark Brent crude fell by 0.09%, trading at $75.75 per barrel at 11.06 a.m. local time (0806 GMT), down from $75.82 at the close of the previous session.

The US benchmark West Texas Intermediate (WTI) declined by 0.1%, settling at $72.23 per barrel, compared to its prior session close of $72.32.

Oil prices moved upwards after US President Donald Trump signed an executive order to reinstate the 'maximum pressure' policy on Iran.

Trump's executive order directs the Treasury Department to impose 'maximum economic pressure' on Iran through sanctions designed to cripple the country’s oil exports.

'We have to be strong and firm, and I hope that it's not going to have to be used in any great measure at all,' Trump commented.

Trump's latest decision heightened global supply disruption concerns, pushing oil prices higher.

In addition, Trump's announcement that he suspended the tariffs he planned to impose on Mexico and Canada for a month continues to impact prices.

Experts state that while comprehensive tariffs will suppress oil prices in the short term, in the long run, this situation may lead to a trade war, which would negatively affect global growth and reignite inflation.

Meanwhile, data indicating a surprise build in crude oil inventories in the US, the world's largest oil-consuming country, signaled weakening demand in the country and capped further price increases.

The American Petroleum Institute predicted that US commercial crude oil stocks increased by 5.25 million barrels last week compared to the previous week. Market expectations were for stocks to increase by 3.17 million barrels.

The US Energy Information Administration (EIA) will announce the official stock data during the day.