Oil Holds Three-Day Gain as Trump Says Iran Strikes to be Brief

(Bloomberg) -- Oil steadied after a three-day rally as President Donald Trump said renewed attacks on Iran would be short-lived while reiterating his claim that the US controls the Strait of Hormuz.

West Texas Intermediate traded near $91 a barrel after surging 9% over the past three sessions. Brent settled below $96 on Wednesday. Asked how long the US bombing campaign could continue, Trump said "I don't think too long," although the president added that "we're prepared to do another one."

The renewed US strikes followed weeks of relative calm, with Iran retaliating by firing drones and missiles on American bases across the Middle East, in line with a pattern used throughout the six-month war. While some oil exports had been exiting the Persian Gulf on tankers with their transponders switched off, the latest hostilities raised the prospect of deeper disruptions.

"The latest escalation should keep support under the market, however, keep in mind both the US and Iran are looking for off-ramps here," said Dennis Kissler, senior vice president for trading at BOK Financial Securities Inc. "More peace talks could deflate prices quickly."

Still, neither the US or Iran have shown a willingness to come to the negotiation table since the collapse of an interim peace accord agreed in June by both sides in Islamabad. Crude prices are more than 30% higher since the war began in late February, with refined products such as diesel rallying even harder due to the Middle East conflict, along with the Russia-Ukraine war.