"While crude is well off its highs and never made a historic spike, diesel cracks are far above prior all-time highs (gasoline is strong, too)."

Hormuz traffic remains severely disrupted, even as Iran and Oman reportedly move toward a deal, with Brent near $85 as markets price in a possible reopening.

Brent crude futures were flat at $88 a barrel or 0.35%, while US West Texas Intermediate crude futures stood at $83.50, up 0.40% a barrel. Both benchmarks had jumped more than 5%…