US-Iran Conflict Drives Oil Prices Higher Amid Fed Uncertainty
Global oil prices remained elevated on Thursday after a sharp rally in the previous session due to renewed military tensions between the US and Iran. The conflict has intensified concerns over potential disruptions to energy supplies from the Middle East, with West Texas Intermediate (WTI) crude holding above $84 per barrel and Brent crude staying above $90 per barrel.
The escalation of hostilities began after an attack on American forces in Jordan, prompting US President Donald Trump to pledge a strong response. Iran has continued to insist on maintaining control over the Strait of Hormuz, a key global oil transit route, while Houthi rebels in Yemen have threatened to blockade Saudi Arabia.
The tightening supply indicators in the US also supported oil prices, with commercial crude inventories recording their largest decline since mid-June and the US Strategic Petroleum Reserve falling for an 18th consecutive week. Meanwhile, the US dollar strengthened in Asian trading after the Federal Reserve kept its benchmark interest rate unchanged, although Chair Kevin Warsh provided limited clarity on future decisions.
In cryptocurrency markets, Bitcoin rose 0.3% to $63,650.06, while Ether gained 0.7% to $1,896.66.