Oil prices climbed Sunday after a weekend of strikes between the United States and Iran.
Brent crude, the international benchmark, rose 3.92% to $78.99 a barrel, and US crude climbed 3.44% to $73.87 a barrel.
But the increase is “pretty tame,” Bob McNally, founder and president of Rapidan Energy Group, told CNN. Brent crude oil prices have trended lower since reaching $115 a barrel in April.
McNally said oil prices have fallen because of President Donald Trump’s reassurance that he wants the Strait of Hormuz open to avoid “a real economic and financial catastrophe.”
Iran has warned vessels against using alternative routes, such as traveling along the Omani coastline. The Omani “southern route” remains open, according to a naval advisory board.
With the uptick in oil prices, gas prices may soon be on the rise. An average gallon of gas in the US costs about $3.87, according to data from AAA — a 30% increase from when the war began in late February.
Gas prices had reached an average of $4.56 on Memorial Day, a busy weekend for drivers. McNally said the drop since the holiday is due to crude oil having “really unwound most of its war gains. That’s partly due to the president’s messaging and balancing on that.”
Meanwhile, Dow Jones futures and S&P futures slipped 0.2%, while Nasdaq futures dropped 0.3%
