Oil Falls to 5-Week Low on Ukraine Peace Deal

Crude oil fell below $84 a barrel on Thursday after surging 6.6% 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.

Crude oil rose above $85 per barrel on Thursday, extending gains from the previous session after the US carried out a fresh wave of air strikes against Iran in response to attacks on American forces across the Middle East, raising concerns over further disruptions to global energy supplies. The two sides also remained unable to reach a potential agreement as Tehran insisted on maintaining control of the Strait of Hormuz. The conflict has now expanded beyond Hormuz into the Red Sea, where Iran-backed Houthi rebels in Yemen threatened to blockade Saudi Arabia, prompting Riyadh to join US forces in launching strikes on targets in Iraq linked to Tehran-backed militants. In the US, commercial crude inventories posted their largest draw since mid-June, reinforcing signs of a tightening physical market. The nation’s strategic petroleum reserves also declined for an 18th straight week, falling to their lowest level since 1983.

Crude oil eased below $84 per barrel on Thursday, but held most of the gains from the previous session as renewed fighting between the US and Iran that threatened further disruptions to global energy supplies. President Donald Trump pledged a strong response after an attack on US forces in Jordan. Meanwhile, both sides continued to struggle to reach a potential deal as Tehran insisted on maintaining control over the Strait of Hormuz. The conflict has also expanded beyond Hormuz into the Red Sea, where Iran-backed Houthi rebels in Yemen threatened to blockade Saudi Arabia, prompting Riyadh to join US forces in striking targets in Iraq associated with Tehran-backed militants. In the US, commercial crude inventories recorded their largest draw since mid-June, reinforcing signs of a tightening physical market. The nation’s strategic petroleum reserves also fell for an 18th consecutive week, reaching their lowest level since 1983.