TOKYO/BEIJING — Oil prices eased on Thursday as traders took profits and assessed the potential impact of renewed U.S. military strikes on Iranian targets, while continuing to monitor the risk of disruptions to crude shipments through the Strait of Hormuz, a vital artery for global energy supplies.
Brent crude futures fell about 0.7% to around $84.37 a barrel by mid-session, while U.S. West Texas Intermediate crude slipped roughly 0.2% to about $79.42 a barrel. The decline followed earlier gains that had lifted both benchmarks close to one-month highs as investors reacted to escalating tensions between Washington and Tehran.
The latest market moves came after the United States struck Iranian coastal defence and missile installations on Wednesday following the reimposition of a naval blockade on Iranian ports. Iranian officials responded by warning they could halt additional regional energy exports, describing the confrontation with the United States as an "existential war," though no broader disruption to Gulf oil exports had been independently confirmed.
Despite the military escalation, analysts said traders appeared reluctant to drive prices significantly higher without evidence of sustained supply losses.
"The market is still reacting with a surprising degree of calmness," Ole Hvalbye, a market analyst at SEB Research, said. He added that repeated disruptions affecting shipping through the Strait of Hormuz continued to support prices and could push crude toward $90 to $100 a barrel if conditions deteriorated further.
The Strait of Hormuz remains one of the world's most important energy chokepoints, handling a substantial share of globally traded crude oil and liquefied natural gas. Market participants continue to watch vessel movements and military developments closely for signs that exports from Gulf producers could face prolonged interruptions.
Some support for oil prices remained in place after Brent climbed nearly $1 during the previous session, reflecting persistent geopolitical risk premiums. However, the latest pullback suggested investors were reassessing whether the conflict would translate into immediate supply shortages or remain largely contained.
Broader financial markets also reflected a measured response to the Middle East tensions. The U.S. dollar remained under pressure following softer U.S. inflation data, while concerns over energy prices were tempered by the absence of confirmed large-scale disruptions to global oil flows.
Investors said trading was likely to remain driven by developments surrounding U.S.-Iran relations and any verified changes in shipping conditions across the Gulf in the coming days.
