1212 ET - Fears of Iran blocking the Strait of Hormuz in response to Israeli air strikes are contributing to crude gains, although "there is reason to believe the situation could remain contained," Societe Generale's Benjamin Hoff says in a note. The loss of nuclear assets would be a significant strategic setback for Iran, but it's "arguably less existential than a major disruption to its oil revenues." U.S. policymakers are likely to favor regional stability over regime change, "and with both sides acutely aware of the costs of escalating into an oil infrastructure war, the incentive may lean toward restraint," he says. Crude futures are off earlier highs, with WTI up 5.6% at $71.84 a barrel and Brent up 5.5% at $73.19. (anthony.harrup@wsj.com)
(END) Dow Jones Newswires
June 13, 2025 12:12 ET (16:12 GMT)
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