Oil extends gains as Middle East supply concerns persist
The U.S. and Iran are reportedly talking separately to mediators as part of renewed efforts to end the conflict, with regional mediators seeking negotiations.
TL;DR
- Oil prices extended gains for a second day, driven by concerns over the Middle East conflict's duration.
- International benchmark Brent crude and U.S. West Texas Intermediate futures both increased.
- The U.S. and Iran are separately talking to mediators in renewed efforts to end the conflict.
- Regional mediators are pushing for ceasefire negotiations.
- Tensions between Saudi Arabia and the Houthis contribute to lingering concerns about energy infrastructure and flows.
- The Strait of Hormuz, a vital oil transit route, remains under close observation.
- President Trump reportedly rejected Tehran's proposal for reopening the strait and expects to resume bombing Iran after midterm elections.