Energy Up Alongside Oil Futures on Iran Conflict Concerns — Energy Roundup

Shares of energy companies rose alongside oil futures as traders braced for escalation in the conflict between Israel and Iran.

Oil futures closed above the psychologically significant $75 per barrel level, as President Trump indicated he was still considering a U.S. strike against Iran. "If anything it's air support, or along the lines of what we've been doing and have historically done," said Oliver Pursche, senior vice president at financial advisory Wealthspire. "You never know, but I don't see boots on the ground."

The Energy Information Administration estimated that U.S. commercial crude oil inventories, excluding the Strategic Petroleum Reserve, fell by 11.5 million barrels for the week ended June 13 — a much more extensive drawdown than analyst had predicted.

"So long as the conflict remains contained then we can expect market reaction to remain similarly muted," said analysts at brokerage IG.

Keyera's $3.76 billion deal for Plains All American Pipeline's natural-gas liquids business in Canada will bolster the energy-infrastructure company's scale, an executive said.

Write to Rob Curran at rob.curran@dowjones.com