Crude futures rose midday Wednesday as markets weighed the implications of a preliminary U.S.-Iran peace agreement following a sharp selloff in the previous session.

As of 11:45 a.m. ET, the July West Texas Intermediate contract was trading 89cts higher at $76.94/bbl, with August up 88cts at $76.15/bbl. August ICE Brent crude rose 87cts to trade at $79.83/bbl, with September up 83cts at $79.50/bbl.

Refined product futures were also trading higher. The July ULSD contract rose 4.21cts to $3.2123/gal, with August up 3.49cts at $3.162/gal. July RBOB climbed 1.59cts to trade at $2.8964/gal, with August up 1.28cts at $2.826/gal.

Crude futures stabilized after falling more than 5% Tuesday following reports that the U.S. and Iran had reached a preliminary agreement to end hostilities, with a formal signing expected Friday. The agreement has raised expectations that the Strait of Hormuz will eventually reopen to normal traffic and that regional oil exports will be restored, although key provisions have not been disclosed and the timeline for recovery remains uncertain.

The International Energy Agency said Wednesday that a full recovery of Persian Gulf oil flows could take months, noting that mines must be cleared from shipping lanes and supply chains will take time to normalize.

The agency said global oil supply is projected to decline by 3.9 million b/d this year before increasing by about 8 million b/d in 2027 if Middle East flows recover, while global demand is forecast to fall by 1.1 million b/d this year and rise by 2 million b/d next year.

The IEA also reported that OECD government oil inventories have fallen by 163 million bbl since the start of the conflict, leaving stockpiles at their lowest level since 1990.


This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.


Reporting by Allegra Fradkin, afradkin@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com


(END) Dow Jones Newswires

06-17-26 1223ET