Oil prices edged lower as the uncertainty surrounding renewed military clashes
Oil prices edged lower on Thursday as investors assessed the uncertainty surrounding renewed military clashes between the US and Iran, which risk disrupting supply from the Middle East.
Brent crude futures fell 59 cents, or 0.62%, to $95.04 a barrel at 05:09 GMT, while WTI crude futures dropped 38 cents, or 0.42%, to $90.63.
The latest attacks were the most significant military conflict between the US and Iran since July, in the seventh month of the war.
Brent and WTI fluctuated between gains of up to $2 and losses of up to $1 a barrel in the previous trading session. Session highs for both indicators were the highest since July 24.
Trump said on Wednesday that the renewed US attack against Iran would not last long and that US forces were targeting Iranian radar and missile systems. He mentioned that the USA destroyed all new equipment being installed along the Strait of Hormuz, some of them for defensive purposes, some for offensive purposes.
He also said they carried out a heavy strike and were ready to do another if needed.
Meanwhile, if the easing of restrictions continues, such as the passage of clandestine vessels and oil transfers through the strait, it won't be long before levels return to those seen at the end of last week.
According to data released Wednesday, four commodity ships passed through the Strait of Hormuz; this is below the 10-day average of around 13.
Iran also added more vessels to its list of non-compliant ships attempting to pass through the strait, subject to fines, seizure, or detention.
According to two Iraqi energy officials on Wednesday, Iraqi oil exports rose to approximately 2.34 million barrels per day in August; this figure was around 1.35 million barrels per day in July. Exports are also expected to increase in September. Because Iran has allowed Irak's tankers to pass through the Strait of Hormuz and offered high discounts, buyers were encouraged.
The U.S. announced on Tuesday that 17 million barrels of oil passed through the Strait of Hormuz on Monday, the largest volume of crude oil to pass through the strait since the start of the U.S.-Israel war against Iran.
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