Oil prices edged lower on Thursday after a volatile trading session, as investors assessed the latest US-Iran strikes and their potential impact on crude supplies through the Strait of Hormuz.
Brent crude was trading at $95.33 a barrel, down 30 cents, or 0.31%, while West Texas Intermediate (WTI) stood at $90.88 a barrel, down 13 cents, or 0.14%, around 7:30 am IST.
The decline followed sharp swings in the previous session, when both benchmarks gained as much as $2 a barrel before giving up as much as $1. Brent and WTI reached their highest intraday levels since July 24, while Brent eventually settled about 1% higher.
Hormuz Traffic Remains Severely Disrupted
The Strait of Hormuz remained the central concern for oil markets, with shipping activity continuing well below normal levels.
Only four commodity vessels passed through the strategic waterway on Wednesday, compared with a 10-day average of around 13, according to preliminary shipping data from Kpler cited by Reuters.
Shipping through the strait has effectively been curtailed since the conflict began with joint US-Israeli strikes on Iranian targets in late February. Before the war, the waterway carried roughly one-fifth of the world’s oil and LNG consumption.
The Islamic Revolutionary Guard Corps has warned that the latest US attacks could further restrict traffic through the strait. Iran has also expanded its list of vessels considered non-compliant, warning that ships attempting to transit the waterway could face fines, confiscation or detention.
The Revolutionary Guards said on Wednesday that two oil tankers had been struck by sea mines and disabled while attempting to cross the strait. The claim was carried by Iranian state media.
Trump Says US Ready for Further Strikes
The latest escalation comes in the seventh month of the US-Iran conflict and represents the biggest exchange of fire between the two countries since July.
US forces struck Iran’s southern coast, while Tehran launched attacks against American military bases across the region.
US President Donald Trump said Wednesday that the renewed American campaign against Iran would not continue for “too long”. He also said US forces had targeted Iranian radar and missile systems.
“We took out all of the new equipment that they tried to build along the Strait of Hormuz,” Trump said, adding that Washington was prepared to launch another attack “any time we want”.
Despite the severe disruption to shipping, the US said around 17 million barrels of oil passed through the Strait of Hormuz on Monday, describing it as the largest volume of crude to transit the waterway since the US-Israeli war against Iran began.
Countries Seek Alternative Supplies
The disruption has intensified concerns over global oil supplies, prompting governments to explore alternative sources and draw on strategic reserves in an effort to limit price increases.
However, those reserves have also been coming under pressure.
The latest military escalation has added another layer of uncertainty to an already volatile oil market. Brent and WTI repeatedly swung between gains and losses during Wednesday’s session before Brent ultimately closed higher.
On Thursday, both benchmarks moved lower as traders weighed the possibility of further US-Iran strikes against the risk of prolonged disruption to oil shipments through the Strait of Hormuz.
With the waterway remaining a critical conduit for global energy supplies, any further deterioration in shipping conditions could put additional upward pressure on crude prices and deepen volatility across international energy markets.
