Crude oil and refined product contracts were trading solidly higher around midday Wednesday after the U.S. and Iran launched new military strikes targeting each other's interests, which could derail talks in restarting Middle East oil flows through the Strait of Hormuz.

At 11:55 a.m. ET, July Nymex West Texas Intermediate crude futures were up around $3.15 to $91.35/bbl and August WTI was $2.95 higher to $89.55/bbl.

London-based ICE August Brent was up by $2.50 to about $93.95/bbl and September Brent increased by $2.45 to $92.35/bbl.

Product futures also tracked crude prices sharply higher. July Nymex RBOB was up 9.45cts to $3.1155/gal and August RBOB was 8.75cts higher to $3.0685/gal. July ULSD was up by 8.25cts to $3.6245/gal and August ULSD gained 7.35cts to $3.591/gal.

Petroleum futures rebounded after Tuesday's pullback, driven by the return of relative calm as both Iran and Israel appeared to halt new military actions.

Late Tuesday, the U.S. struck Iran in retaliation for the downing of an American helicopter near the Strait of Hormuz. U.S. Central Command said the action was a "proportional response" to Iranian attacks on American forces and international shipping.

Iranian officials tried to portray the downing as an accident, then launched missile and drone strikes on U.S. allies in the Gulf and Jordan in response to the American attacks.

Earlier, President Trump on Truth Social indicated he is losing patience with peace talks with Iran, threatening Tehran that it "will have to pay the price."

Ritterbusch and Associates, an oil consultancy, said the U.S.-Iran skirmishes did little to increase the risk premium in a petroleum market that is more focused on a possible interim deal that would at least partially reopen the strait.

Energy market participants are also digesting the latest Energy Information Administration data which showed a solid 7-million-barrel drawdown of U.S. commercial crude stocks for the week ended Friday, with mixed and little changes in both gasoline and distillate inventories.


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 Frank Tang, ftang@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com


(END) Dow Jones Newswires

06-10-26 1250ET