U.S. crude prices climbed 1.8% by mid-morning, with the August West Texas Intermediate contract rising $1.10 to $70.33/bbl. Brent crude saw more measured gains, with the September contract up 93cts to $73.63/bbl. Refined products followed the upward trend, as both ULSD and RBOB futures notched gains of approximately 2.6%. The July ULSD contract traded 8.46cts higher at $3.2928/gal, while July RBOB rose 7.76cts to $3.0347/gal.
In section Market Quotes
Oil Futures Climb as Tensions Flare in the Persian Gulf
Crude oil and refined product futures pushed higher Monday morning as renewed hostilities between the U.S. and Iran disrupted tanker traffic in the Strait of Hormuz. Despite the escalation, markets remain cautious, balancing the threat of supply interruptions against signals that diplomatic negotiations in Qatar may still proceed.
Market volatility is tempered by the prospect of continued diplomacy, with President Trump confirming that representatives are scheduled to meet in Qatar on Tuesday. Analysts suggest the current price action reflects an attempt to clear a backlog of crude previously trapped in the Strait of Hormuz. Sparta Commodities’ Neil Crosby noted that the market is navigating a temporary surge of Arabian Gulf barrels, compounded by soft demand from China. Meanwhile, domestic fuel markets are bracing for the Fourth of July holiday, with AAA projecting 61.4 million Americans will travel by car. While national retail gasoline prices average $3.85/gal—down 70cts from last year—an impending heat wave in the Southeast poses a secondary risk to Gulf Coast refinery operations.
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