Oil tankers and cargo ships docked at Port Sultan Qaboos near Qaboos Port on June 21, 2026 in Muscat, Oman.
Elke Scholars | Getty Images
Oil prices were up 4% on Wednesday morning following the eleventh consecutive round of US strikes against Iran overnight, as Secretary of State Marco Rubio said the Strait of Hormuz remained a sticking point between the two sides.
Brent crude futuresthe international benchmark, traded about 4% higher at $94.76. US West Texas Intermediate crude futures were up 3.9% to trade at $87.61.
Oil prices
Speaking to reporters at a meeting of ASEAN foreign ministers in the Philippines on Wednesday, US Secretary of State Marco Rubio said Washington is still willing to negotiate an end to the war.
“The US would like to reach a diplomatic agreement, we would like to reach an agreement if possible with Iran … where they say they will no longer support terrorism and will not pursue a nuclear weapon or the things you need to get a nuclear weapon,” he said.
But he also said that “right now they don’t seem serious” about making a deal, adding that Tehran made commitments in the Memorandum of Understanding reached last month, “and within two weeks it broke.”
“You make a deal and you break a deal, [then] that deal is no longer in effect,” Rubio said. “That doesn’t mean you can’t have a future deal, but ultimately that future deal will have to be judged on whether or not you abide by the terms. And that agreement called for the opening of [Strait of Hormuz’s] free and fair navigation.”
While reiterating that the U.S. remains open to diplomacy, Rubio said U.S. forces will continue to protect navigation through the waterway.
“We will continue to protect shipping, we think that other countries should join us in that effort,” he said. “The president has a lot of options, if they continue to insist that they don’t cooperate … I think Iran knows that we have a lot of options.”
Earlier in the ASEAN meeting on Wednesday, Rubio said Washington “will do what is necessary to protect our interests and the interests of our partners.”
His comments came a day after US President Donald Trump told reporters Iran “desperately wants” to meet to continue talks, but that Washington was “not interested” until Tehran showed a willingness to “engage in a meaningful way.”
“If we go right now, it will take Iran 20, 25 years to rebuild. And we’re not done at all… we’re not going right now.”
Tuesday saw US Central Command conduct its eleventh night in a row against Iran.
Centcom forces have targeted Iranian military facilities, naval capabilities, airstrips, drone depots, and military infrastructure.
The military said the strikes were completed to “further degrade Iran’s ability to threaten commercial shipping in the Strait of Hormuz.”
Rubio said on Wednesday that the strait – a key route for the transportation of oil and other important goods – remains a factor in bilateral negotiations, alleging that Iran is “demanding the right” to control the waterway. Allowing this to happen would set a “very dangerous precedent” for the world, he added.
“Without success regarding Iran, the market’s focus returned to inflation in the last 24 hours, as Brent crude closed above $90/bbl for the first time in over a month, reviving fears about a major shock. And this morning we saw a further increase above $92/bbl, so there is little sign of oil prices in the US confirming that oil prices will decrease overnight. strikes against Iran,” said Jim Reid of Deutsche Bank in the paper Wednesday morning.
As energy prices continue to rise, investors are betting on the Federal Reserve’s hawkish policy moves.
“The probability that they will go up in July has increased to 26%. [Tuesday’s] close, the highest since last week’s low reading in the US CPI print,” Reid wrote on Wednesday.
As of Wednesday morning, financial markets were pricing in a 24.1% chance of a rate hike from the Fed this month, and a 69% chance of at least a quarter-point increase in September, according to CME’s FedWatch tool.
ING analysts said in a paper released Wednesday morning that there are “rising risks to energy supply” in energy markets, as hopes for a temporary standoff between the US and Iran.
“The disruption facing the market is not limited to the Middle East. In the Black Sea, the Russian CPC terminal has stopped receiving oil from Kazakhstan, loading has been suspended following ongoing attacks on tankers,” they noted.
“If the suspension lasts longer, there is a high chance that Kazakhstan will be forced to cut production upstream. The volumes shipped from the CPC terminal are significant, with around 1.7mb/d loaded in June.”
