Oil Slightly Trims Gains But Tensions Remain High

1443 GMT – Oil prices slightly trim earlier gains as investors closely watch developments in the Middle East amid escalating attacks between the U.S. and Iran and threats to Red Sea shipping by the Houthi rebels. In early U.S. trading, Brent crude is up 3.4% to $94.11 a barrel after reaching $95, while WTI futures rise 3.2% to $87.01 a barrel. President Trump said on a social-media post on Wednesday that the U.S. would “bomb and destroy one bridge or power plant” any time Iran targets a ship in the Strait of Hormuz. Meanwhile, the Houthis’s announced maritime blockade on Saudi Arabia has already affected commercial behavior in the Red Sea, with several tankers altering course or pausing their voyages as owners assess the security situation, according to Kpler. (giulia.petroni@wsj.com)

Oil Extends Gains on Dimming Hopes for Peace Talks

0834 ET – Oil futures extend their gains as the U.S. and Iran continue strikes and U.S. Secretary of State Marco Rubio said Iran isn’t serious about peace talks. His comments come after President Trump said Tuesday that the U.S. isn’t interested in a meeting until Iran is ready to meet in a meaningful way. “This, combined with the opening of new fronts, will likely prompt a wave of speculators to chase prices higher, potentially pushing Brent crude above the triple-digit levels,” says Peter Cardillo of Spartan Capital. WTI is up 3.2% at $87.06 a barrel and Brent is 3.6% higher at $94.29. (anthony.harrup@wsj.com)