Oil rises as Iran-Israel tensions continue

Oil drilling rigs

Oil prices rose on June 18 in a volatile session as investors followed developments in the Middle East, with the military escalation between Iran and Israel continuing for a sixth day.

Brent crude futures for August delivery rose 0.25%, or 25 cents, to settle at $76.70 a barrel. West Texas Intermediate (WTI) crude futures for July delivery rose 0.40%, or 30 cents, to settle at $75.14 a barrel.

Oil lost some of its recent momentum after US President Donald Trump said in press statements that Tehran had asked him to hold bilateral negotiations at the White House. He added his country may attack Iran, or may not.

The Iranian government denied Trump's comments, stressing that it will not negotiate under duress and has never asked to "marshal its way to the White House."

Oil prices received support from official data showing that US crude inventories fell by 11.5 million barrels last week, compared to expectations of a decline of only 1.6 million barrels.

Elsewhere, the Federal Reserve decided today to hold its key interest rates steady for the fourth consecutive meeting, noting that economic activity continues to expand strongly and that inflation remains somewhat elevated.