SerpApi.Org
Oil prices marched higher on Wednesday, carrying energy stocks along for the ride, amid renewed US strikes on Iran that have raised fears about continued disruptions of crude shipped through the Strait of Hormuz.
Secretary of State Marco Rubio said in Manila on Wednesday that Iran was “not serious about [peace] talks,” but noted that the US was “always committed to diplomacy.”
Brent crude futures, the international benchmark briefly hit $95 a barrel early in the day, but slipped back to trade at $94.40, up 3.7%. Continuous-contract futures for West Texas Intermediate crude jumped near 4% to $87.27.
ExxonMobil stock and Chevron stock were both up 1.1% in premarket trading, with shares in ConocoPhillips gaining 1.2%.
“Oil has moved sharply higher again as renewed US strikes on Iran revived concerns about supply disruption through the Strait of Hormuz,” said Daniela Hathorn, a senior market analyst at Capital.com.
“The market is therefore rebuilding part of the geopolitical premium: the issue is not simply whether Hormuz is formally open or closed, but whether shipping volumes, insurance costs and tanker availability remain impaired.”
Write to Jack Denton at [email protected]