Crude Edges Higher as US Expands Military Campaign

Crude edges higher as US expands military campaign against Iran

The WTI prompt-month contract rose $0.49 to $79.83/Bbl on Tuesday morning (7:30 AM CT)
US CENTCOM reported it launched another round of strikes, targeting assets it says are being used to support attacks on commercial shipping transiting the Strait of Hormuz
President Trump signaled further escalation, warning that Iranian power infrastructure and bridges could become targets unless Tehran returns to negotiations
- The US reinstated its blockade of Iranian shipping on Tuesday, although Trump backed away from plans to charge transit fees for vessels crossing the Strait of Hormuz
- Iranian state media reported Tehran is considering disrupting additional trade routes used by the US and its allies, including working with Yemen's Houthi movement to threaten shipping through the Bab el-Mandeb Strait
The API estimated US crude inventories declined by 600 MBbls last week, with official EIA inventory data scheduled for release on Wednesday

Gas trades flat despite bearish forecast shift

Natural gas is down -1.3c to $2.891/MMBtu (As of 07:30 AM CDT)

L48 power burn hit a YTD high in this morning’s nominations, approaching 50 Bcf/d (S&P)

Despite power burn being at a 2026 high, the Northeast and Midwest regions lost around 14°F across the forecast period (Criterion)
The East Coast and South Central region’s forecasted temperatures are mostly under the 10 year average in the forecast range (CWG)

L48 storage week temperatures are expected to hover in the 78-79°F range throughout all of July (Criterion)