Key facts
- Oil prices steadied as renewed U.S.-Iran hostilities created uncertainty.
- A forecast draw in U.S. crude inventories provided support.
- Brent futures rose 0.27% to $91.70 a barrel, and WTI crude gained 0.26% to $88.43.
- U.S. crude inventories have fallen for eight consecutive weeks.
- Iran continues to restrict shipping through the Strait of Hormuz.
- Geopolitical risk premium has been reintroduced into oil markets.
Oil prices traded near steady as renewed U.S.-Iran hostilities complicated market direction, while a forecast draw in U.S. crude inventories offered some support. Brent futures were up 0.27% to $91.70 a barrel, and U.S. West Texas Intermediate crude gained 0.26% to $88.43.
Prices had traded higher earlier in the session due to renewed strikes between the U.S. and Iran before retreating. Analysts noted that global stock draws are underpinning prices, but lower Chinese crude oil imports and limited shipping flow through the Strait of Hormuz are capping gains. The U.S. military conducted strikes on Iranian targets following President Donald Trump's vow to respond to the downing of a U.S. Apache attack helicopter. This shift in focus has reintroduced a geopolitical risk premium into oil markets.
Tehran has indicated it would resume hostilities if Israel continues its campaign against the Hezbollah militia in Lebanon. Iran has also continued to restrict most shipping through the Strait of Hormuz, a critical chokepoint for global oil and LNG. Meanwhile, U.S. crude oil inventories reportedly fell for an eighth consecutive week, with gasoline stocks also declining.