Oil prices climbed sharply Wednesday as hopes for a ceasefire between the United States and Iran continued to fade, with Secretary of State Marco Rubio saying Tehran remains "not serious about talks" while the U.S. military carried out another night of strikes targeting Iranian military infrastructure.
Brent crude, the global benchmark, rose 3.61% to $94.30 a barrel by 8:23 a.m. ET, while U.S. benchmark West Texas Intermediate gained 3.15% to $87 a barrel. The gains came as investors weighed the risk of a prolonged conflict and continued disruptions around the Strait of Hormuz.
Speaking during the ASEAN Foreign Ministers' meeting in the Philippines, Rubio said Washington remains committed to pursuing diplomacy despite the ongoing fighting.
"If Iran is serious, we're serious," Rubio said. But he added that Tehran is "not serious about talks" and warned that "if they're not, then we will do what is necessary to protect our interests and also the interests of our allies."
Rubio also identified the Strait of Hormuz as a major obstacle in negotiations, saying Iran "demands the right" to control the strategic waterway. Granting that demand would establish a "very dangerous precedent" for the international community, he said.
According to the report, Iran has threatened ships using routes it has not approved and has targeted vessels operating closer to Oman's side of the strait. The United States has continued assisting commercial ships transiting the area despite those threats.
President Donald Trump suggested Tuesday that Iranian officials are seeking renewed negotiations. Speaking to reporters in the Oval Office, Trump said Tehran officials "want to meet desperately to try and end it because they're getting decimated," while adding that the United States is "not finished" in Iran.
The report said Washington is simultaneously preparing for negotiations and the possibility of further escalation. U.S. officials have reportedly urged Israel to avoid actions that could undermine prospects for de-escalation even as military planning continues.
The U.S. Central Command said on social media that it carried out an 11th consecutive night of strikes, targeting "military operations centers, maritime capabilities, aircraft hangars, drone storage facilities, and military logistics infrastructure to further degrade Iran's ability to threaten commercial shipping in the Strait of Hormuz."
CENTCOM added: "Despite Iranian aggression, the Strait of Hormuz remains open for commercial vessel transit. Since early May, CENTCOM forces have helped facilitate the transit of approximately 900 commercial vessels and 450 million barrels of crude oil."
