US-Iran war: Oil prices slipped on Thursday as investors assessed the uncertainty surrounding renewed military strikes between the U.S. and Iran, raising concerns over potential disruptions to crude supplies from the Middle East.
Brent crude futures declined 43 cents, or 0.45%, to $95.20 a barrel, while US West Texas Intermediate (WTI) crude futures fell 24 cents, or 0.26%, to $90.77 a barrel.
Brent and WTI prices fluctuated sharply in the previous trading session, moving between gains of up to $2 a barrel and losses of around $1. The intraday highs for both benchmarks marked their highest levels since July 24.
What’s driving crude oil prices?
The latest attacks marked the most significant exchange of fire between the US and Iran since July, as the conflict enters its seventh month.
US President Donald Trump said on Wednesday that the renewed American military campaign against Iran would not last “too long”. He added that US forces had struck Iran’s radar and missile systems.
“We took out all of the new equipment that they tried to build along the Strait of Hormuz – some defensive, some offensive … It was a very heavy attack last night, and we’re prepared to do another one any time we want,” Trump said.
Meanwhile, four commodity vessels passed through the Strait of Hormuz, well below the 10-day average of around 13 vessels, according to preliminary shipping data from Kpler released on Wednesday.
Iran has also expanded its list of vessels considered non-compliant, warning that ships attempting to navigate the strait could face fines, confiscation or detention.
The US said on Tuesday that around 17 million barrels of oil moved through the Strait of Hormuz on Monday, marking the highest volume of crude to transit the strategic waterway since the US-Israeli war against Iran began.
Separately, US crude oil inventories declined by 4.5 million barrels last week, marking their first drop since late July, according to data from the Energy Information Administration. Inventories at the key Cushing, Oklahoma, storage hub edged up to 22.5 million barrels, while gasoline stocks decreased.
(With inputs from agencies)
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