Oil surges past $95 as U.S. downplays Iran diplomacy and a 2nd key trade route is disrupted - NBC News

What the report says

NBC News reported that oil prices climbed sharply Wednesday amid worsening tensions around Iran and new concerns over shipping in another major trade corridor. International benchmark Brent crude rose as much as 4.9%, briefly topping $95 a barrel for the first time in nearly six weeks, while U.S. crude gained as much as 5.1% before settling at $86.83, up 2.9%. Brent closed at $94.07, up 3.4%.

The market move followed U.S. officials’ reduced expectations for near-term diplomacy after an 11th consecutive night of strikes on Iran. President Donald Trump said a mid-June memorandum of understanding aimed at ending the war and reopening the Strait of Hormuz was “over” earlier in July, and he escalated warnings Wednesday over attacks on ships in the waterway. Secretary of State Marco Rubio said the U.S. remained open to diplomacy but argued Iran was not showing seriousness, according to NBC News.

Shipping pressures were central to the price reaction. NBC cited reports from the U.K.’s Maritime Trade Organization of multiple vessel attacks near the Strait of Hormuz, including incidents in which crews abandoned ship. MarineTraffic data cited by NBC showed extremely low crossings through the strait early in the week.

NBC also reported that Iranian-backed Houthi rebels in Yemen said they would seek a maritime blockade on Saudi Arabia, raising concern about the Bab el-Mandeb Strait, a key route into the Red Sea. The oil spike fed into broader inflation concerns: AAA data tracked by NBC showed the U.S. average gasoline price rising to $4.06 a gallon, while Treasury yields and mortgage rates also moved higher.