Crude oil contracts rose nearly $5 by midday Monday, as uncertainty over the prospect of peace talks between the United States and Iran and the status of the Strait of Hormuz re-ignited supply fears.
At 11:55 a.m. ET, the more-active June NYMEX West Texas Intermediate crude contract was around $4.20 higher to $86.80/bbl. May WTI was up $4.55 to $88.40/bbl.
London-based June Brent was $4.70 higher to $95.05/bbl. July Brent jumped $3.80 to $90.30/bbl.
The oil benchmarks were off their overnight highs, after U.S. forces on Sunday seized a containership in the Gulf of Oman that belongs to a subsidiary of an Iranian state company. That raised questions about when the strait would open again after having been effectively closed since U.S. and Israel attacked Iran in late February.
June NYMEX ULSD was 14.50cts higher to $3.4470/gal. May ULSD was up 14.35cts to $3.5405/gal. June RBOB was 10.15cts higher to $3.0310/gal and May RBOB increased 10.90cts to $3.1135/gal.
Iranian state media on Monday cast doubts on the likelihood of a second round of talks between the U.S. and Iran, saying U.S. demands for a framework deal are excessive and that Washington must lift its blockade on Iranian ports first.
Despite the April 7 cease-fire, the Strait which accounts for about one fifth of global oil production, has remained shut. The U.S. and Iran appear far apart on items including Tehran's nuclear program and Israel's attacks in Lebanon.
The two-week cease-fire is set to expire Tuesday.
Barclays energy analysts said in a Monday note that a relatively quick normalization of oil flows through the strait is largely already priced into the market, indicating crude benchmarks could rise further from current levels.
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 Steve Cronin, scronin@opisnet.com
(END) Dow Jones Newswires
04-20-26 1233ET
