SerpApi.Org
Crude oil futures rose to fresh six-week highs on Wednesday, with Brent crude topping $95/bbl, after the U.S. military carried out an 11th consecutive night of attacks on Iran and U.S. Secretary of State Rubio said Iran was not serious about reaching a deal to end the fighting.
"The U.S. would love to reach a diplomatic settlement, we'd love to reach an agreement if it were possible with Iran," but the Iranians "don't seem to be serious" about making a deal, Rubio told reporters at the ASEAN Foreign Ministers meeting in the Philippines.
Rubio's remarks came a day after President Trump said the U.S. is not interested in a meeting until Iran is ready to meet "in a meaningful way."
Trump said Wednesday that the U.S. will blow up an Iranian bridge or power plant every time Iran shoots at a ship in the Strait of Hormuz.
"This, combined with the opening of new fronts, will likely prompt a wave of speculators to chase prices higher, potentially pushing Brent crude above triple-digit levels," Peter Cardillo of Spartan Capital said in a note.
Traffic through the Strait of Hormuz has declined sharply, while several tankers reportedly have moved to avoid the Bab el-Mandeb Strait following threats to shipping by the Iran-backed Houthi militia in Yemen.
"The energy market now has the dual-strait worry, with the Bab el-Mandeb Strait looking like it could join the Strait of Hormuz as a hot spot, as traders closely watch shipping numbers in the Red Sea," KCM Trade chief market analyst Tim Waterer said in a note.
Meanwhile, Russia's Caspian Pipeline Consortium stopped receiving oil from Kazakhstan after suspending loadings due to attacks on oil tankers at its Black Sea terminal.
Front-month Nymex crude (CL1:COM) for August delivery up 3.1% to $86.96/bbl, and front-month Brent crude (CO1:COM) for September rose 3.3% to $94.06/bbl, after hitting a session high of $95.47; both benchmarks touched their highest levels since June 11.
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