DTN Oil Update
Oil Prices Rise as Hormuz Stays Shut After Canceled Talks
VIENNA (DTN) -- Oil and product futures extended their rise Monday morning as the two-month long U.S.-Israeli war on Iran seemed no closer to a diplomatic resolution, keeping at near zero flows through the Strait of Hormuz, passageway for a fifth of global petroleum liquid supply.
By 8:45 a.m. EDT, NYMEX WTI crude for June delivery was up $1.77, or 2%, to $96.17 bbl, after a three-week high of $97.10.
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ICE Brent for June rose $1.94, or 1.6%, to $107.27 bbl, after reaching a three-week high $108.50 bbl earlier in the session.
Downstream, NYMEX ULSD futures for May delivery advanced by $0.1209 to $4.0083 gallon, and front-month NYMEX RBOB futures edged up $0.0010 to $3.4547 gallon.
The U.S. Dollar Index softened by 0.264 points to 98.10 against a basket of foreign currencies.
The two sides remained at an impasse over conditions to continue talks. The U.S. demands any peace deal to address the nuclear issue, while Iran is reluctant to negotiate while under total U.S. embargo.
Tehran last week presented a proposal to reopen the Strait and end the war that would leave negotiations about its nuclear program for later. U.S. President Donald Trump on Saturday canceled a planned trip by special envoys to Islamabad, saying Tehran didn't "offer enough."
While the U.S.-Iranian ceasefire is holding, the U.S. Navy continued to intercept sanctioned Iranian vessels and block traffic in and out of Iranian ports.
Despite President Trump's announcement last week that the Israeli-Lebanese ceasefire was being extended by three weeks, Israel launched new strikes on Lebanon on Sunday. The ceasefire, originally announced on April 16 for a period of 10 days, was a key demand by Tehran, which in response lifted its blockade of the Strait of Hormuz. The blockade was reinstated the next day after the U.S. seized an Iranian cargo ship.