US-Iran Tensions Send Oil Prices Plummeting Amid Escalating Conflict
Oil prices took a hit on Thursday as tensions between the US and Iran continued to escalate. The latest confrontation marked seven months of conflict, with Brent crude futures falling by 1.05% to $94.63 per barrel, while West Texas Intermediate (WTI) crude futures dropped by 1.05% to $90.05 per barrel.
According to Mettis Global data, the sharp decline in prices came after a volatile session on Wednesday, where both benchmarks had touched their highest levels since July 24. The volatility eased as it became clear that the latest escalation may be losing momentum, with US President Donald Trump stating that the renewed military campaign against Iran would not continue for 'too long'.
Trump also announced that US forces had targeted Iranian radar and missile systems, while warning of further attacks if required. In response, Iran expanded its list of vessels considered non-compliant, threatening penalties including fines, confiscation, or detention for ships attempting to pass through the Strait of Hormuz.
In other news, Iraq significantly increased its crude exports in August, with around 2.34 million barrels per day shipped compared to approximately 1.35 million bpd in July. The increase was attributed to heavy discounts and Iranian approvals allowing Iraqi tankers to transit the Strait of Hormuz.