FX.co ★ Crude Oil Pares Gains, Trades Slightly Lower

WTI crude oil futures saw a reduction in their earlier gains, trading below $75 per barrel on Thursday, yet still close to a five-month high. This shift followed President Trump's statement about making a decision on the US's role in the Israel-Iran conflict "within two weeks," which eased the immediacy of potential supply disruptions from the Middle East. Earlier, tensions flared as renewed missile exchanges between Israel and Iran, after Tel Aviv claimed to have targeted nuclear sites in Iran, stirred fears of a significant conflict that could impact tanker routes through the Strait of Hormuz, temporarily pushing prices above $77. Trump's initial ambiguous comments about a possible US military response had heightened market concerns, encouraging an elevated risk premium. However, by delaying any immediate US military action, he instigated profit-taking among traders. Concurrently, the dollar maintained most of its earlier losses from the beginning of the quarter, as uncertainties surrounding US economic policy led investors to turn away from dollar-denominated assets, thereby bolstering commodities priced in the American currency.