Oil Holds Decline

WTI crude futures climbed more than 3% to around $77 per barrel on Thursday, extending this week’s advance as hostilities between the US and Iran escalated after a US submarine reportedly sank an Iranian warship off the coast of Sri Lanka. US Defense Secretary Pete Hegseth described the strike as the “first such attack on an enemy since World War II.” The broader US-Israeli campaign against Iran has now entered its sixth day, keeping markets on edge for further escalation and the risk of a drawn-out conflict. The crisis has effectively halted commercial shipping through the Strait of Hormuz, after the IRGC warned it would “set ablaze” any vessel attempting transit. In an effort to limit a wider energy shock, President Donald Trump offerd risk insurance and naval escorts for commercial vessels transiting the Persian Gulf, while Treasury Secretary Scott Bessent outlined additional measures aimed at stabilizing Gulf markets.

WTI crude oil futures slipped toward $74 per barrel on Wednesday, retreating from a more than one year high and posting their first decline since the onset of direct conflict, as government pledges to safeguard trade routes tempered immediate supply fears. The crisis has effectively halted commercial traffic through the Strait of Hormuz, with the IRGC warning it would “set ablaze” any vessel attempting transit. Seeking to contain a broader energy shock, President Trump instructed the DFC to offer political risk insurance at reasonable rates, while Treasury Secretary Bessent signaled a series of measures to stabilize the Gulf. Despite US promises of naval escorts, major shipowners remain anchored, preserving a sizable geopolitical risk premium as markets await an operational federal insurance backstop. Meanwhile, Iranian UN Ambassador Ali Bahreini denied any indirect talks with Washington, saying the only remaining language is defense after strikes that killed senior Iranian leaders.

WTI crude oil futures pulled back below $75 per barrel on Wednesday after a three-day rally of nearly 14% that had pushed prices to a more than one-year high, driven by concerns over the Middle East conflict disrupting global energy flows. Gains eased following reports that Iranian intelligence officials had indirectly contacted the US via another country’s spy agency to discuss terms for ending the conflict, raising hopes of a potential de-escalation. The crisis has already forced major producers to halt output and severely limited traffic through the Strait of Hormuz. US President Donald Trump said the US International Development Finance Corporation would provide insurance for vessels and naval escorts if needed to secure energy shipments. Meanwhile, Saudi Arabia reported an attempted attack on its Ras Tanura refinery and confirmed plans to divert supplies to the Red Sea to maintain operations, keeping markets focused on regional infrastructure risks.