Shares of energy companies gave back some of their gains as fears of wider conflict in the Middle East subsided.

The Islamic State claimed responsibility for bombings in Iran, which had triggered concerns that the conflict in Israel was spreading across the Middle East.

Energy company APA agreed to buy smaller peer Callon Petroleum in a stock-swap deal valued at about $4.5 billion including debt, continuing a wave of consolidation in the energy sector.

U.S. crude oil inventories fell more than expected last week, while stocks of gasoline and distillate fuels saw large increases pointing to sluggish demand for products, according to data released Thursday by the U.S. Energy Information Administration.


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

(END) Dow Jones Newswires

01-04-24 1722ET