Oil rises as U.S. Iran strikes dent diplomatic hopes

June 03, 2026 (MLN): Global oil prices moved higher on Wednesday as investors assessed the growing conflict between the United States and Iran, while signs of continued diplomatic engagement between the two countries helped temper fears of a wider escalation.

Currently, Brent crude futures are up by $3.10, or 3.30%, to $97.13 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures are up by 4.15%, to $94.93 per barrel by [10:12 am] PST.

The increase in crude prices came after the U.S. Central Command reported that it had intercepted several Iranian ballistic missiles and drones and carried out defensive strikes in response to attempted attacks by Iran, according to CNBC.

The latest military actions highlighted the rising tensions in the Middle East, a region critical to global energy supplies.

Despite the renewed hostilities, U.S. President Donald Trump and Secretary of State Marco Rubio indicated that communication channels with Tehran remain open.

Trump dismissed reports suggesting that negotiations had collapsed, stating that discussions between the two sides were still underway.

Rubio also said there was a possibility that Iran could engage in talks regarding elements of its nuclear program as part of broader diplomatic efforts.

Earlier reports from Iranian media had suggested that indirect contacts between Washington and Tehran had been suspended and that Iran was considering measures to fully close the Strait of Hormuz, one of the world's most important routes for crude oil shipments.

Any disruption to traffic through the waterway could have significant implications for global energy markets.

Meanwhile, the conflict has severely affected the Middle East’s oil and gas industry, resulting in production outages, reduced exports and extensive damage to energy infrastructure.

According to the assessment, Qatar, Bahrain and Iraq have been among the countries most exposed to the economic and operational fallout from the ongoing hostilities.

The combination of geopolitical uncertainty, concerns over energy supply disruptions and conflicting signals on diplomacy continued to drive volatility in oil markets.

Copyright Mettis Link News