Oil Prices Ease as U.S.-Iran Military Strikes Cloud Middle East Supply
By Sam Li and Lewis Jackson
Market Reactions and Geopolitical Tensions
BEIJING, Sept 3 (Reuters) - Oil prices edged lower on Thursday as investors weighed the uncertainty of renewed military strikes between the U.S. and Iran that risk disrupting supplies from the Middle East.
Oil Price Movements
Brent crude futures fell 43 cents, or 0.45%, to $95.2 a barrel at 0029 GMT, while U.S. West Texas Intermediate crude futures were down 24 cents, or 0.26%, at $90.77.
The latest attacks were the most substantial exchange of fire between the U.S. and Iran since July, with the war now in its seventh month.
Volatility in Trading Sessions
Brent and WTI swung between gains of as much as $2 a barrel and losses of $1 a barrel during the previous trading session. The session highs for both benchmarks were the highest since July 24.
Analyst Insights and Market Sentiment
Oil prices retreated on tentative signs that the latest flare-up was easing, with no confirmed exchange of fire since around midday on Wednesday, Sydney time, IG analyst Tony Sycamore said in a note.
Statements from U.S. Leadership
U.S. President Donald Trump said on Wednesday that the renewed U.S. campaign against Iran would not continue for "too long" and that U.S. forces had targeted Iran's radar and missile systems.
Details of Military Action
"We took out all of the new equipment that they tried to build along the Strait of Hormuz - some defensive, some offensive ... It was a very heavy attack last night, and we're prepared to do another one any time we want," Trump said.
Potential for Supply Stabilization
"If that easing holds, and it is a big if, it won't be long before oil moving out of the Strait via dark-ship transits and ship-to-ship transfers returns to the levels we saw at the end of last week," Sycamore said.
Shipping and Supply Chain Updates
Four commodity vessels transited the Strait of Hormuz, below the 10-day average of around 13, preliminary shipping data from Kpler showed on Wednesday.
Iranian and U.S. Actions in the Strait of Hormuz
Iran also added more ships to the list of vessels it deems non-compliant and subject to fines, confiscation or detention if they try to sail through the strait.
The U.S. said on Tuesday that 17 million barrels of oil transited the Strait of Hormuz on Monday, calling it the largest volume of crude to pass through the waterway since the U.S.-Israeli war on Iran began.
(Reporting by Sam Li and Lewis Jackson; Editing by Thomas Derpinghaus)
