Oil Futures Extend Rally on Continued U.S., Iran Strikes

1505 ET – Oil futures rise for a third straight session as the U.S. and Iran continue strikes, while President Trump says the U.S. isn’t interested in a meeting until Iran is ready to meet in what he called “a meaningful way.” His comments dampen expectations for a quick return to the negotiating table. “The market remains supported by elevated geopolitical risk, but any meaningful diplomatic breakthrough could quickly remove part of the current risk premium,” analysts at Kotak Neo say in a note.WTI for August delivery goes off the board at $84.91 a barrel, up 2%, while the September contract rises 2.3% to $84.34. Brent settles up 2% at $91.01 a barrel. (anthony.harrup@wsj.com)

Oil Gains 2.5% on U.S.-Iran Attacks, Shipping Risks

1446 GMT – Oil prices gain more than 2.5% as fresh attacks between the U.S. and Iran and threats of a naval blockade by Yemen’s Houthis lift Brent crude above $91 a barrel. Efforts by mediators to broker a new ceasefire between Washington and Tehran have provided some relief to markets, but the wide gap between the two sides leaves investors skeptical about the prospects for a lasting agreement. Maritime traffic through the Strait of Hormuz has virtually halted, while any disruption to the Bab al-Mandab Strait by the Houthis would deal a significant blow to energy markets at a time when global oil inventories are tighter, analysts say. In early U.S. trading, Brent rises 2.6% to $91.55 a barrel, while WTI is up 2.6% to $84.66 a barrel. (giulia.petroni@wsj.com)