Oil Prices Slump Amid Escalating Tensions in Middle East

Oil prices retreated on Thursday as the market digested escalating tensions in the Middle East. Despite recent US attacks on Iran, investor focus shifted to supply flows through key chokepoints in the region.

Brent futures fell $0.96, or 1.06%, to $89.78 a barrel, while US West Texas Intermediate (WTI) crude dropped $0.64, or 0.76%, to $83.82 a barrel.

These losses came after Brent settled up 7.91% in the previous session and WTI rose 6.56% in one of the sharpest spikes of the Iran war.

Rystad Energy's Ye Lin attributed the price spike to Trump's 'hit hard' rhetoric, but noted that the market has fully priced it in and is now considering the possibility that he might back down.