WTI Oil Prices Slip Below $84 Amid Dollar Strength and Iran Tensions

Oil prices slipped Thursday as the US dollar strengthened to a two-week high, but the market's downward momentum was capped by escalating tensions between the US and Iran.

The West Texas Intermediate (WTI) crude oil benchmark dipped below $84.00 per barrel, pressured by the firmer greenback, which makes dollar-denominated commodities more expensive for holders of other currencies.

However, the risk premium embedded in prices due to geopolitical tensions prevented a sharper sell-off. The market is closely watching for any concrete actions that could tighten supply, with one energy analyst noting: 'The market is balancing a firm dollar against real supply risks.'

The US Energy Information Administration (EIA) reported a larger-than-expected build in crude stocks, adding to the bearish sentiment. Nevertheless, the drawdown in gasoline and distillate inventories provided some offsetting support, suggesting firm demand for refined products.