BEIJING, September 3 (Reuters) - Oil prices retreated on Thursday as investors assessed the evolving situation regarding renewed military strikes between the United States and Iran, which pose risks to Middle Eastern crude supplies. The latest confrontation marked the most substantial exchange of fire since July, with the conflict now extending into its seventh month. Brent crude futures declined 43 cents, representing a 0.45 percent decrease, closing at $95.2 per barrel at 0029 GMT.
U.S. West Texas Intermediate crude futures fell 24 cents, or 0.26 percent, settling at $90.77. During the previous trading session, both Brent and WTI benchmarks experienced significant volatility, swinging between gains of as much as $2 per barrel and losses of approximately $1 per barrel.
Session highs for both crude contracts reached levels not seen since July 24. Oil prices moved lower following tentative signals that the latest military flare-up was de-escalating, with no confirmed exchange of fire reported since approximately midday on Wednesday, Sydney time, according to IG analyst Tony Sycamore. He noted that if the easing holds, crude oil transiting through the Strait of Hormuz via dark-ship transfers and ship-to-ship operations would likely return to previous week's levels.
U.S. President Donald Trump stated on Wednesday that the renewed American campaign against Iran would not continue for an extended duration. Trump indicated that U.S. forces had targeted Iranian radar and missile systems, as well as defensive and offensive equipment constructed along the Strait of Hormuz.
"It was a very heavy attack last night, and we're prepared to do another one any time we want," Trump said. Shipping data from Kpler revealed that only four commodity vessels transited the Strait of Hormuz on Wednesday, significantly below the 10-day average of approximately 13 vessels. Meanwhile, Iran expanded its list of vessels deemed non-compliant with regulations, subjecting them to potential fines, confiscation, or detention if attempting passage through the strategic waterway.
The U.S. reported on Tuesday that 17 million barrels of crude oil transited the Strait of Hormuz on Monday, marking the largest volume to pass through since the commencement of the U.S.-Israeli conflict involving Iran. Source: Reuters, reporting by Sam Li and Lewis Jackson.
Source: reuters.com