Crude oil futures rallied midday Thursday as stalled U.S.-Iran talks and heightened tensions around the Strait of Hormuz kept a geopolitical risk premium in the market.
As of 12:30 p.m. ET, September West Texas Intermediate was trading $2.11 higher at $87.94/bbl, with October up $2.10 at $86.49/bbl. October ICE Brent crude traded $1.94 higher at $93.56/bbl, with November up $1.95 at $91.74/bbl.
The September ULSD contract rose 0.19ct to $4.4542/gal, with October up 3.02cts at $4.3529/gal. September RBOB edged 1.67cts lower to $3.284/gal, while the October contract climbed 0.89ct to $2.9864/gal.
Oil prices extended gains for a fifth consecutive day after President Trump said Wednesday that he would launch a major economic campaign against Iran, including economic consequences for countries and entities that provide the country with a financial lifeline. Trump said any country allowing its financial institutions, businesses, airports or government entities to provide such support would face economic consequences.
The comments came as talks between the U.S. and Iran to establish a peace deal have stalled. Concerns over limited traffic through the Strait of Hormuz and disagreement over conditions for reopening the waterway have added to the market's focus on potential supply disruptions.
