The U.S. military attacks on Iranian mine-laying ships in the Strait of Hormuz resulted in a 4% gain in crude oil prices on Tuesday. The attacks were considered a setback in the peace talks that over the weekend brought oil prices down below $100 a barrel. They also dashed any hopes of an agreement to re-open shipping through the Strait of Hormuz.
On Tuesday, Iran said the U.S. had violated a ceasefire after it conducted what it called defensive strikes in southern Iran, while U.S. Secretary of State Marco Rubio said negotiating a deal to halt the conflict could “take a few days.”
Brent crude, the global benchmark, gained $3.44 or 3.6% to close at $99.58 a barrel. U.S. gasoline futures also fell 7% and U.S. diesel dropped 4% to its lowest close in five weeks.
West Texas Intermediate (WTI) crude finished down $2.71 or 2.8% and finished at $93.89 a barrel on the New York Mercantile Exchange.
While Monday was a U.S. holiday, Brent lost 7% and closed at its lowest mark since April 20.
Natural gas prices finished lower in Tuesday’s trading, settling at $2.894 MMBtu after a decline of $0.013 or 0.45%.
Tuesday was a rough trading day for most Oklahoma energy stocks as they finished with losses. Devon Energy dropped more than 4% but the biggest percentage loss was Stardust Power at more than 14%. On the positive side, USA Rare Earth jumped nearly 10%.
We have also added Diversified Energy Company to our daily list of energy stocks following the firm’s $1.1 billion acquisition of more oil and gas territory in Oklahoma.