Oil stocks pulled back in morning trading on Wednesday. Robin Energy fell 18%; Houston American fell 12%; Mexco fell 7%; Indonesia Energy fell 5%; Halliburton fell 2%; TotalEnergies and BP fell 1%.

Oil prices fell nearly 2% on Wednesday after gaining earlier in the session as investors weighed the chance of supply disruptions from the Iran-Israel conflict and potential direct U.S. involvement.

Brent crude futures fell $1.40, or 1.8%, to $76.73 a barrel by 10:41 a.m. EDT. U.S. West Texas Intermediate crude dropped $1.29, or 1.7%, at $73.55. Both contracts had gained over 4% the previous session.

Prices turned negative after President Donald Trump on Wednesday declined to answer reporters' questions on whether the U.S. was planning to strike Iran or its nuclear facilities, and said the Iranians had reached out but he feels "it's very late to be talking".

Trump said Iran had proposed to come for talks at the White House but did not provide details.

"He’s basically suggesting that Iran could say, 'Alright, we’re going to shut down our nuclear program'," said Phil Flynn, senior analyst with the Price Futures Group. "That would avoid the U.S. getting into a conflict. That would be reduction of risk."

On Tuesday, Trump warned that U.S. patience was wearing thin and called for an "unconditional surrender" from Iran, an option that Iran's leader Ayatollah Ali Khamenei rejected on Wednesday.

While Trump said there was no intention to kill Khamenei "for now", his comments had suggested a tougher stance towards Iran as he considers whether to increase U.S. involvement.

A source familiar with internal discussions said one of the options Trump and his team were considering included joining Israel in strikes against Iranian nuclear sites.