Washington is putting greater military pressure on Iran’s ability to threaten shipping as the conflict enters a dangerous new phase.

October WTI crude oil (CLV26 ) closed up +0.79 (+0.88%) on Wednesday, and October RBOB gasoline (RBV26 ) closed down -0.0313 (-1.00%). Crude oil and gasoline prices settled mixed on Wednesday, with crude oil posting a fresh 6-week high.

John Kilduff, Again Capital founding partner, joins 'Squawk Box' to discuss the latest oil price trends, impact of Iran war on oil prices, details of the U.S.-Venezuela oil deal, and more.

The United States threatened more devastating strikes. Iran accused Washington of hitting a wedding party, killing four people and wounding dozens.

Oil prices declined Thursday as Trump indicated brief Iran strikes, calming supply concerns. Brent fell 1.5%, WTI dropped 1.4% following three-day gains.

October WTI crude oil (CLV26 ) is up +0.43 (+0.48%) today, and October RBOB gasoline (RBV26 ) is up +0.0126 (+0.40%). Crude oil and gasoline prices are moving higher today, with crude oil posting a fresh 6-week high.

The oil experiment in Venezuela is about to be tested. If it works, and new oil revenue benefits both countries, could Iran be next?

Sound familiar? A pause in fighting between the United States and Iran has given oil traders hope that a diplomatic resolution could restart the flow of oil traffic out of the Middle East.

Iran’s oil shipments to Asia have all but dried up, driving the cost of those cargoes to the highest levels in years even before the US administration announces fresh moves to isolate Tehran and its trading partners.

Similar moves in Europe and Japan reflect widening deficits and soaring debt, which are raising the cost to governments of borrowing money from investors.