Oil Advances Most in a Week as Middle East Tensions Persist - Bloomberg

Oil Advances Most in a Week as Middle East Tensions Persist - Bloomberg:

Oil rose the most in more than a week as Iran’s seizure of a British oil tanker fueled concerns about escalating tensions in the Middle East.

Futures closed 1.1% higher in New York on Monday after easing some gains during the session. While the U.K. demanded the immediate release of the Stena Impero, taken by Iran’s Revolutionary Guard Corps in the Strait of Hormuz on Friday, British Defense Minister Tobias Ellwood said he wanted to de-escalate the situation. 

“It seems to be a situation where neither side is trying to force a military solution to these tensions,” said Bob Yawger, director of the futures division at Mizuho Securities USA. “So in situations like this, news of the conflict leads the market to rally strongly and then pull back.”

West Texas Intermediate for August delivery, which expires Monday, added 59 cents to settle at $56.22 a barrel on the New York Mercantile Exchange, the largest gain since July 10. The more-active September WTI contract rose 46 cents to end the session at $56.22 a barrel.

Brent for September settlement advanced 79 cents to settle at $63.26 a barrel on the ICE Futures Europe Exchange. The global benchmark crude traded at a premium of $7.04 for the same month, the widest since late June.