U.S. crude prices climbed 1.8% by mid-morning, with the August West Texas Intermediate contract rising $1.10 to $70.33/bbl. Brent crude saw more measured gains, with the September contract up 93cts to $73.63/bbl. Refined products followed the upward trend, as both ULSD and RBOB futures notched gains of approximately 2.6%. The July ULSD contract traded 8.46cts higher at $3.2928/gal, while July RBOB rose 7.76cts to $3.0347/gal.

Market volatility is tempered by the prospect of continued diplomacy, with President Trump confirming that representatives are scheduled to meet in Qatar on Tuesday. Analysts suggest the current price action reflects an attempt to clear a backlog of crude previously trapped in the Strait of Hormuz. Sparta Commodities’ Neil Crosby noted that the market is navigating a temporary surge of Arabian Gulf barrels, compounded by soft demand from China. Meanwhile, domestic fuel markets are bracing for the Fourth of July holiday, with AAA projecting 61.4 million Americans will travel by car. While national retail gasoline prices average $3.85/gal—down 70cts from last year—an impending heat wave in the Southeast poses a secondary risk to Gulf Coast refinery operations.