FX.co ★ Oil Eases as Markets Assess US-Iran Tensions

WTI crude futures slipped toward $95 per barrel on Thursday after three consecutive sessions of gains, as investors weighed intensifying US–Iran tensions that continue to undermine prospects for a peace deal and the normalization of Middle Eastern energy flows. The pullback followed a US strike on an empty oil tanker bound for Iran on Tuesday, which prompted Iran to launch attacks on US naval bases in Bahrain and Kuwait, as well as on commercial vessels. Shipping through the Strait of Hormuz—an essential corridor for roughly one-fifth of global oil and LNG supplies—has remained subdued since the onset of the conflict. However, recent reports indicate that traffic through the waterway has increased over the past two weeks, with some vessels transiting in coordination with the US military, although volumes are still well below pre-conflict levels. At the same time, EIA data showed that US crude inventories fell for a sixth straight week, nearing minimum operating thresholds.