Trump says hits on Iran 'help' Israel, Middle East and Europe

Oil prices dipped on Thursday as market participants considered the potential disruption to Middle Eastern supplies following renewed military tensions between the United States and Iran. Brent crude futures slipped 59 cents, or 0.62%, to $95.04 a barrel, while U.S. West Texas Intermediate crude futures fell 38 cents, or 0.42%, to $90.63. This was the most significant exchange of fire between the two nations since July, marking the seventh month of the ongoing conflict.

The latest attacks were the most substantial since early July, with both Brent and WTI prices fluctuating between gains of up to $2 a barrel and losses of $1 a barrel during the previous trading session. The peak prices for both benchmarks were the highest since July 24. Oil prices retreated on indications that the latest flare-up was subsiding, with no confirmed clashes since around midday on Wednesday in Sydney time, according to IG analyst Tony Sycamore.

U.S. President Donald Trump suggested on Wednesday that the renewed U.S. campaign against Iran would not persist indefinitely, stating that American forces had struck Iran's radar and missile systems. He emphasized that the attack was "very heavy" and that the U.S. was prepared to launch another strike if necessary. Sycamore noted that if this easing persists, oil flowing out of the Strait of Hormuz via dark-ship transits and ship-to-ship transfers could return to levels observed at the end of last week.

Four commodity vessels passed through the Strait of Hormuz, below the 10-day average of around 13, based on preliminary shipping data from Kpler. Iran also added more vessels to the list of non-compliant entities liable for fines, confiscation, or detention if they attempt to navigate through the strait. Meanwhile, Iraq's oil exports surged to approximately 2.34 million barrels per day in August, up from around 1.35 million bpd in July, with September exports expected to increase further due to discounts and approvals for Iraqi tankers to traverse the Strait of Hormuz.