Brent Near $89

Brent fell nearly 1.8% to below $89 a barrel on Thursday, following a 7.9% surge in the previous session, amid signs of improving shipping activity through the Strait of Hormuz and continued diplomatic efforts to ease regional tensions, despite ongoing hostilities in the Middle East. According to Kpler, 14 commodity vessels transited the Strait of Hormuz in both directions on Wednesday, up from single-digit daily crossings recorded last week. Qatar also dispatched its first LNG cargo through the waterway, while reports indicated that Saudi Arabia had proposed a naval coalition to safeguard key trade routes. Meanwhile, elevated crude inventories in China continued to weigh on import demand, further easing fears of a near-term supply squeeze. However, geopolitical risks remained elevated after US forces struck dozens of Iranian military targets in an effort to weaken Tehran's ability to threaten regional shipping and US allies.

Brent crude oil traded around $90 per barrel on Thursday after surging 7.9% in the previous session, as markets balanced renewed geopolitical tensions against signs that oil flows through the Strait of Hormuz were improving. According to Kpler, 14 commodity vessels transited Hormuz in both directions on Wednesday, up from single-digit levels seen last week. Meanwhile, ample crude inventories in China continued to limit import demand, easing some supply concerns. Still, US forces struck dozens of Iranian military targets in an effort to curb Tehran’s ability to threaten regional shipping and US allies. Also, the East-West pipeline to bypass Hormuz that Saudi Arabia has increasingly relied on now faces risks from Iran-backed Houthis. On top of that, the Caspian Pipeline Consortium suspended oil loadings at its Black Sea terminal after two tankers associated with the facility were attacked overnight.

Brent fell below $91 a barrel on Thursday after surging 7.9% in the previous session, amid renewed US military action against Iran. President Donald Trump pledged retaliation following an Iranian strike on a US military base in Jordan, reinforcing concerns that the conflict could become more prolonged and further threaten energy supplies from the Persian Gulf. The escalation has also heightened risks to shipping through the Red Sea, a critical alternative trade route. US Central Command said its forces launched a major wave of strikes targeting dozens of Islamic Revolutionary Guard Corps sites. Meanwhile, Yemen’s Iran-backed Houthi rebels continued to threaten Saudi Arabia, while Saudi forces joined US operations against Tehran-linked militants in Iraq. Adding to supply concerns, the Caspian Pipeline Consortium suspended oil loadings at its Black Sea terminal after two tankers associated with the facility were attacked overnight.