Barani Krishnan DTN Refined Fuels Market Reporter
SECAUCUS, N.J. (DTN) -- Crude and product futures extended their rally Monday as geopolitical tensions flared following comments from U.S. President Donald Trump that the naval blockade on Iranian oil will remain, while Tehran threatened to reseal the Strait of Hormuz amid widening clashes in Lebanon.
NYMEX WTI for July delivery settled up $4.80, or 5.5%, at $92.16 bbl, recovering from a six-week low of $86.35 plumbed in Friday's trade on expectations that an imminent peace deal might still be possible to the three-month long Middle East conflict.
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Among refined products, NYMEX ULSD futures for July delivery advanced $0.1508 to settle at $ 3.6394 gallon, and July RBOB rose $0.0503 to finish at $3.0847 gallon.
The U.S. Dollar Index edged higher by 0.278 points to 99.13 against a basket of foreign currencies.
Crude and product futures maintained their upward trajectory as diplomatic avenues to resolve the historic oil supply disruption from the Middle East conflict deteriorated.
In conflicting remarks, U.S. President Donald Trump said he intended to "go silent" on Iran, saying he had overstated his desire to make a deal, and that the U.S. will maintain its naval blockade on Iranian ports to force Tehran to the negotiation table. He later wrote on his social media platform, Truth Social, that "talks are continuing, at a rapid pace, with Iran."
Publicly, Tehran appeared to adopt a non-communicative stance too, even as Pakistan said it had been asked by Iran to continue with mediation.
For the two-month long truce between the two sides to progress into a peace deal, Iran is seeking an end to the bombing of its Hezbollah allies in Lebanon by Israel.
Iran's military warned on Monday that it may reseal the Strait of Hormuz after allowing over the past 24 hours some 70 vessels to cross the narrow chokepoints, which typically provides passage to twice as many ships -- mostly oil tankers -- during peacetime.