Oil Prices Hold Near Multi-Week Highs Amid Trump's Downplayed Iran Conflict
Oil prices remained near multi-week highs in European trading on Thursday after three consecutive sessions of gains, despite President Donald Trump's downplaying of the renewed US-Iran conflict.
The rally had been driven by fears that military confrontation between the two countries could further disrupt oil supplies from the Middle East. However, Trump said on Wednesday that the renewed campaign against Iran would not persist for an extended period, helping to temper some of the market's immediate supply concerns.
He also stated that the US targeted Iranian radar, missile systems, and capabilities linked to laying mines around the Strait of Hormuz. The Strait remains a key focus for oil markets, with 17 million barrels of crude passing through on Monday, the highest volume since the conflict sharply reduced flows.
Despite some volatility in shipping traffic, preliminary Kpler data showed only four commodity vessels transited the strait on Tuesday, compared to an average of about 13. Additionally, US commercial crude stocks fell by 4.5 million barrels last week, defying analysts' estimate for a small rise.