Oil price increases moderated after Israel and Iran indicated a desire to avoid further escalation following a day of hostilities.

The WTI crude benchmark rose 0.8%, settling near $91 per barrel, after earlier surging as much as 5.5%. Israeli Prime Minister Benjamin Netanyahu stated that Israel would not retaliate immediately against Iran but would respond with force if attacked again. Iranian media conveyed a similar stance earlier.

The recent tit-for-tat attacks could potentially derail negotiations aimed at ending the Middle East conflict and reopening the Strait of Hormuz.

A senior U.S. official earlier stated on a social platform that both nations desire an immediate ceasefire agreement. The official added that a peace deal could be hindered by ignorance or folly.

The intraday high for oil prices remained below $100 per barrel, suggesting markets have largely avoided the worst impacts from what the International Energy Agency called the largest supply disruption in history. At the peak of this conflict, the global benchmark price approached $130 per barrel.

"If tanker traffic remains restricted in the coming months, the physical crude market could tighten further," said Rob Thummel, a senior portfolio manager at Tortoise Capital. "In that scenario, declining inventories could exert upward pressure on futures prices over the next month or two."

Before Iran ceased its attacks, Yemen's Houthi group announced a comprehensive ban on Israeli vessels in the Red Sea. However, an industry body suggested the move would not significantly impact shipping, as many vessels are already avoiding those waters.

In New York, the WTI July futures contract rose 0.8%, settling at $91.30 per barrel.

The Brent August contract advanced 1.3%, settling at $94.25 per barrel.