Hormuz Flows Offset Hostility Concerns as Oil Prices Slip

Oil prices slipped on Thursday as traders weighed the impact of increased flows through the Strait of Hormuz against concerns over US-Iran hostilities. West Texas Intermediate (WTI) fell 1% to settle below $84 a barrel, while Brent closed near $89.

The uptick in shipping through Hormuz, which connects the Gulf to global markets, was noted by market intelligence firm Kpler, as 14 commodity vessels transited the waterway on Wednesday. This development offset concerns over a fresh wave of hostilities from Iran to the Black Sea.

China's robust crude inventories suggest that buyers can continue relying on stockpiles while keeping imports subdued, adding to the market's mixed sentiment. The US and Iran exchanged air strikes on Thursday, with analysts warning of potential supply disruptions.