To The Moon

Oil prices are fluctuating as investors assess the expanding impact of the Iran conflict on Middle East energy markets. WTI stabilized after surging approximately 11% over the prior two sessions, settling below $75 per barrel. Traders are speculating on the U.S. military's next steps to gauge potential disruptions to energy markets. The White House press secretary stated that current actions against Iran do not involve ground troops. Iran's semi-official Tasnim news agency denied a New York Times report claiming that Iranian intelligence personnel had contacted the CIA via a third country's intelligence service to discuss terms for ending the conflict. This report briefly caused oil prices to turn lower. Saudi Arabia reported a thwarted attack on its largest refinery, Ras Tanura, and confirmed it is diverting some supplies from the Persian Gulf to the Red Sea. Rapid restoration of shipping through the Strait of Hormuz is critical for Gulf nations to maintain production as storage facilities near capacity. Vandana Hari, founder of Vanda Insights, commented, "The market will struggle to calm down unless it sees evidence of a gradual return to normalcy in shipping." The U.S. Energy Information Administration's weekly report showed a crude inventory increase of about 3.5 million barrels, the highest since May, easing some supply disruption concerns. April WTI crude held steady, settling at $74.66 per barrel. May Brent crude futures settled at $81.40 per barrel.