Brent crude futures fell 43 cents, or 0.45%, to $95.20 a barrel, while U.S. West Texas Intermediate crude slipped 24 cents, or 0.26%, to $90.77. The decline followed sharp gains earlier in the week and marked the first retreat for both benchmarks in four sessions.
The latest clashes represent the most significant exchange of fire between Washington and Tehran since July, intensifying concerns that the conflict could disrupt energy flows through the Strait of Hormuz, one of the world’s most important oil transit routes.
Trading remained volatile, with both Brent and WTI swinging between gains of about $2 and losses of roughly $1 during the previous session. Brent had climbed to its highest level since July 24 before giving up some gains.
Market participants were encouraged by tentative signs that the latest escalation could lose momentum. U.S. President Donald Trump said Wednesday that he did not expect the renewed bombing campaign against Iran to continue for much longer, helping ease some fears of an immediate supply shock. SShare Talk
However, risks remain elevated. Only six commodity vessels crossed the Strait of Hormuz on Wednesday, according to shipping data cited by Reuters, while Iran has increased enforcement against vessels it considers non-compliant.
Meanwhile, Iraq increased crude exports sharply in August, potentially providing some additional supply to global markets. Investors are now watching closely for further military developments, shipping disruptions and any signs that the conflict could widen.
For now, oil markets remain caught between fears of a major supply disruption and hopes that the latest confrontation will remain limited.