Crude oil and refined product contracts were broadly higher after the U.S. struck two Iranian vessels following an overnight exchange of fire.

Meanwhile, Washington is awaiting a response from Tehran about a proposed agreement to end the war.

June Nymex West Texas Intermediate crude futures were up 90cts to $95.70/bbl on Friday, and July WTI was about $1 higher to $92.10/bbl.

London-based July ICE Brent was $1.70 higher to $101.80/bbl, and August Brent rose $1.45 to $97.85/bbl.

For the week, both oil benchmarks were on track to finish more than $6/bbl lower.

The sharp pullback that started mid-week came after the Wall Street Journal reported, citing people familiar with the matter, that the U.S. and Iran are working with mediators to formulate a one-page, 14-point memorandum of understanding that would set the parameters for a month of talks to end the war.

Refined product contracts also tracked crude higher. June ULSD was up 8.05cts to about $3.8970/gal and July ULSD was 6.70cts higher to $3.7065/gal. June RBOB was up 2.35cts to $3.4795/gal and July RBOB climbed 2.50cts to $3.3310/gal.

U.S. military forces disabled two empty Iranian tankers Friday in retaliatory strikes after the vessels attempted to circumvent the naval blockade, according to U.S. Central Command.

The airstrikes came as Secretary of State Marco Rubio warned that the U.S. would fire on any Iranian vessels that threaten American ships and said Washington was expecting a response from Tehran about the memorandum proposed by the White House earlier in the week.

In the spot market, Chicago physical ULSD was trading about 65cts higher to $5/gal, as those cash barrels extended Thursday's 40cts/gal rally, boosted by strong buying interest related to thin distillate inventories in the U.S. Midwest market.


This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.


-- Reporting by Frank Tang, ftang@opisnet.com, editing by Allegra Fradkin, afradkin@opisnet.com


(END) Dow Jones Newswires

05-08-26 1249ET