Oil Prices Crude Eases as US-Iran Tensions Keep Markets on Edge

Oil Prices edged lower on Thursday as traders assessed rising tensions between the United States and Iran. They also monitored the potential impact on global oil supplies through the Strait of Hormuz.

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Brent crude fell 58 cents, or 0.68%, to $84.37 a barrel by 08:08 GMT. Meanwhile, U.S. West Texas Intermediate (WTI) crude slipped 18 cents, or 0.23%, to $79.42 a barrel. Earlier in the session, Brent gained nearly $1. Both benchmarks remained close to one-month highs.

According to Ole Hvalbye, a market analyst at SEB Research, investors have responded calmly to the latest developments. He said oil prices could rise to between $90 and $95 a barrel. He added that prices could even approach $100 if disruptions in the Strait of Hormuz continue.

Meanwhile, the United States struck Iran’s coastal defence and missile sites on Wednesday. The action followed Washington’s decision to reimpose a naval blockade on Iranian ports. In response, Iran warned that it could disrupt additional regional energy exports. Officials also described the confrontation with Washington as an “existential war.”

The latest escalation followed the collapse of a fragile truce reached in June. As a result, concerns have grown over energy flows through the Strait of Hormuz. Before the conflict, the waterway handled about one-fifth of global oil and liquefied natural gas (LNG) trade.

Furthermore, shipping activity through the strait declined after the blockade resumed. Seven vessels crossed the waterway on Wednesday. A day earlier, 13 vessels had passed through.

Wael Makarem, Lead Financial Markets Strategist at Exness, said markets remain cautious as investors assess supply risks. However, he noted that oil tankers continue to transit the Strait of Hormuz. He added that shipping traffic has become more limited.

Additionally, Iran described the Strait of Hormuz as an inviolable “red line.” Officials warned they would target infrastructure across the Gulf if U.S. President Donald Trump ordered attacks on Iranian infrastructure.

Analysts also said Iran could rely on its Houthi allies in Yemen to disrupt shipping through the Bab el-Mandeb Strait. If that happens, another vital global energy route could face disruption.

Separately, Ukraine’s Security Service said it worked with the Ukrainian navy to strike two Russian “shadow fleet” tankers. The operation used naval drones in the Black Sea.