Crude Holds Steady As Hopes Of Middle East Tension Easing Emerge

(RTTNews) - After hitting a nearly five-month high, crude oil price held steady on Wednesday as President Donald Trump hinted that Iran reached out for potential dialogue. Possibilities of an easing of conflict softened earlier price gains.

WTI Crude Oil for July delivery rose by $0.30 to settle at $75.15 per barrel. This is the highest price for crude since January.

August Brent Crude was last seen up by $0.10 to $76.55.

The Israel-Iran conflict, which began with Israeli airstrikes on June 12th, entered the sixth straight day with casualties increasing on both sides.

Trump has stated that he has encouraged Israeli PM Benjamin Netanyahu to "keep going" with his attacks and that Iran made a mistake by not reaching a nuclear deal with the U.S.

However, he added that Iran had reached out for talks and proposed to visit the White House, although he said that he felt it was a "little late."

With Israel doubling down on its attacks, investors are watchful of U.S. participation, as it could escalate the crisis and impact global commodity and stock markets more deeply.

In the Persian Gulf region, the 39-km Strait of Hormuz that allows transport of one-sixth of global oil and one-third of world's Liquified Natural Gas is a critical chokepoint between the Arabian Gulf and the Gulf of Oman. Oil and gas prices would depend on the smooth transit of marine traffic along this strait.

This strait has so far been spared of any disruption. Now, Iran has threatened to close the strait which, if happens, could spur retaliation by U..S and its allies.

Separately, data revealed that U.S. crude inventories fell by 11.5 million barrels to 420.9 million last week, more than industry expectations.