DTN Oil Update
Brent Tops $110 bbl as Middle East War Looks to Drag On
VIENNA (DTN) -- Oil prices extended their run higher Friday on dimming prospects of a ceasefire in the month-long U.S.-Israeli war on Iran. Despite the U.S. postponing strikes on Iranian energy infrastructure for 10 days, Israel and Iran continued to exchange fire while the Pentagon mulled sending thousands more troops into the region.
Prices slid in Thursday's, March 26, after-hours trading as U.S. President Donald Trump announced on his social media platform that he was extending the moratorium on strikes planned by the U.S. on Iranian energy assets. The gesture was to accommodate Iran's request, as talks between it and White House appointed negotiators were "going well", the president said. Tehran denied making such a request or being in talks.
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Energy market resumed their broad rally in the latest session after Israel's Defense Minister Israel Katz warned that Israeli attacks on Iran 'will escalate and expand". The Iranian military has pledged to go "all-out" as well in response.
By 9:05 a.m. EDT, NYMEX WTI crude for May delivery was up $2.72 to $97.20 bbl, while ICE Brent crude for May delivery rose $2.63 to $110.85 bbl.
ULSD futures for April delivery advanced $0.0871 to $4.3605 gallon, and front-month RBOB futures edged higher by $0.0836 to $3.2138 gallon.
The U.S. Dollar Index strengthened by 0.182 points to 99.89 against a basket of foreign currencies.
On a weekly basis though, both WTI and Brent showed a decline after market volatility this week from speculation of a potential ceasefire in the Middle East amid Trump's insistence that U.S. and Iran were engaged in talks.
Tehran, on its part, said it was only interested in lasting peace, not a temporary ceasefire. It has responded to Washington's 15-point peace proposal, submitted through Pakistani intermediaries, with its own 5-point plan, which included recognition over Iran's sovereignty over the Strait of Hormuz that it has blockaded. Iran's armed forces on Friday claimed to have turned back three vessels attempting to transit the waterway that used to serve a fifth of world petroleum cargo, saying traffic will only be open to "friendly" nations.
Iranian attacks on Israel and U.S.-allied neighbors are also continuing unabated.