Oil jumps about 5% as U.S.-Iran truce falters, Hormuz risks grow
What's new: Brent settled at $78.02, its highest since June 19, as traders weighed tanker disruptions and a new Russian diesel export ban.
Oil prices climbed sharply Wednesday after President Donald Trump threatened fresh strikes on Iran, stoking fears that renewed fighting could further disrupt shipping through the Strait of Hormuz. Brent crude rose $3.86, or 5.2%, to settle at $78.02 a barrel, while U.S. West Texas Intermediate gained $3.08, or 4.4%, to $73.52. Earlier in the session, both benchmarks were up nearly 9% before retreating after Trump signaled he did not expect a full-scale war. Analysts at RBC Capital Markets said the flare-up likely reduced the number of vessels willing to transit Hormuz, a key route for global oil exports. Diesel markets tightened further after Russia barred diesel exports following Ukrainian drone strikes on refineries and fuel infrastructure.