Oil Posts Weekly Gains on Renewed Middle East Skirmishes

1509 ET – Oil futures end the week higher on a renewal of military strikes by the U.S. and Iran following attacks on tankers in the Strait of Hormuz. Gains are tempered by market expectations that the flare-up will be short-lived, as President Trump says the U.S. has agreed to continue talks although the ceasefire is over. “Some version of this outcome was becoming increasingly inevitable,” says Henry Hoffman, co-portfolio manager of the Catalyst Energy Infrastructure Fund. The Strait of Hormuz was never fully normalized, he says. “The Iranians have dragged this process out for longer than many expected, and in doing so have worsened the global inventory situation.” WTI settles down 0.9% at $71.41 a barrel for a 4% weekly gain. Brent slips 0.4% to $76.01 and is up 5.4% from last week. (anthony.harrup@wsj.com)

Oil Futures Retreat as Trump Confirms Talks With Iran

1203 ET – Oil futures move lower after President Trump confirms in a social-media post that the U.S. has agreed to continue talks with Iran, but adds the U.S. told Iran that the ceasefire is over. “These talks could prove meaningless unless definition is applied to the control of the Strait of Hormuz,” Ritterbusch & Associates says in a note. While the price pullback of the last couple of sessions suggests market optimism about the talks, with Iran willing to attack ships violating their suggested route through the strait, the impasse could easily continue through much of this month, the firm adds. WTI is down 1.7%, at $70.85 a barrel, and Brent is off 1.2%, at $75.35. (anthony.harrup@wsj.com)