Stock Market News Today – Oil prices extended gains to a three-week high on Friday as escalating tensions between the U.S. and Iran added to a rally of nearly 10% in U.S. crude.
New York-traded West Texas Intermediate crude futures rose 45 cents, or 0.8%, at $57.52 a barrel by 7:56 AM ET (11:56 GMT), while Brent crude futures, the benchmark for oil prices outside the U.S. gained 84 cents, or 1.3%, to $65.29.
WTI oil was on track for weekly gains of 9.5%, while Brent was up 5.3% from a week ago.
U.S. President Donald Trump had authorized military strikes against Iran in response to the strike against a U.S. surveillance drone late Thursday, but called off the attack at the last minute, according to a New York Times report.
The report is the latest development in escalating tension between Washington and Tehran in the Gulf region where six oil tankers have been damaged by explosions in the past six weeks.
“We continue to believe amid this growing tension in the Middle East, along with expectations of an OPEC+ deal extension, that oil prices will trend higher over the second half of the year,” ING commodities strategists Warren Patterson and Wenyu Yao said in a note.
OPEC producers have postponed their official meeting to July 1 with non-members joining the following day. “A weaker U.S. dollar, with a more dovish Fed only adds further support,” they added.
In other energy trading, gasoline futures surged 3.4% at $1.8465 a gallon by 7:58 AM ET (11:58 GMT), while heating oil jumped 1.9% at $1.9197 a gallon.
Lastly, natural gas futures traded up 1.1% at $2.208 per million British thermal unit.