Oil Rebounds From a Month Low as Iran and the U.S. Trade Strikes, Raising Doubts a Peace Deal is Near

Crude Oil Prices Jump as Iran Strikes in Retaliation to U.S. Attack

Crude oil prices rose on Thursday following strikes by Iran in retaliation to an earlier U.S. attack, taking focus away from ongoing peace talks.Brent crude at last look gained 1.9% to near US$96.10/barrel and West Texas Intermediate crude was up 2.1% to above $90.50/barrel. This comes after Iran's Revolutionary Guard said they targeted a U.S. airbase in response to the U.S. military's drone operation in the port city of Bandar Abbas, Reuters said in a Thursday report.Both benchmarks previously hit their lowest levels in a month on the possibility of a deal between the U.S. and Iran to end the war and reopen the Strait of Hormuz, the report said."While any faith remains that a deal will be struck, prices will drift until some such time as the depletion in global oil inventories starts to finally bite and once again reminds us of how over a billion barrels of oil is stuck behind the pinch of Hormuz," Reuters quoted PVM Oil Association analyst John Evans saying.

Brent Crude Up Near 2% at About US$96.10

Sector Update: Energy Stocks Decline Late Afternoon

Energy stocks were lower late Wednesday afternoon, with the NYSE Energy Sector Index falling 1.4% and the State Street Energy Select Sector SPDR ETF (XLE) decreasing 1.1%.The Philadelphia Oil Service Sector Index slumped 2.9%, and the Dow Jones US Utilities Index shed 0.6%.Front-month West Texas Intermediate crude oil fell 5.3% to $88.94 a barrel, and the global benchmark Brent crude contract dropped 5.1% to $94.52 a barrel. Henry Hub natural gas futures rose 5% to $3.04 per 1 million BTU.In sector news, the memorandum of understanding being negotiated between Tehran and Washington will call for US forces to withdraw from Iran's vicinity and lift the blockade of Iranian ports in return for reopening the Strait of Hormuz to pre-war levels, CNN reported, citing Iranian state television. The US denied claims that maritime traffic through the Strait of Hormuz could return to normal within a month of the Iran deal, Bloomberg reported. President Donald Trump on Wednesday expressed confidence that the US would be able to reach a deal to end the conflict, but he is not yet satisfied with the terms, CNN reported.In corporate news, Kosmos Energy (KOS) shares fell 6% after Mizuho downgraded the stock to underperform from neutral.TotalEnergies (TTE) is facing a dispute with Mozambique over about $2 billion in costs tied to delays at its liquefied natural gas project in the country, Bloomberg reported. TotalEnergies shares fell 3.6%.Chevron (CVX) shareholders have rejected a proposal put forth at the company's annual general meeting that would have required appointing an independent board chair separate from the chief executive officer, Reuters reported, citing preliminary voting results. Chevron shares were down 1.4%.DTE Energy (DTE) added 0.3% after the firm said it will invest $1.6 billion to develop Michigan-made battery energy storage systems in collaboration with LG Energy Solution Vertech.