Oil Drops on Mideast talks

Crude oil fluctuated around $80 per barrel on Thursday, but stayed close to one-month highs as the US stepped up its military campaign against Iran in an effort to safeguard shipping through the Strait of Hormuz. US forces carried out fresh airstrikes on Wednesday, targeting Iranian missile storage facilities and launch sites near the strategic waterway. Reports also indicated that President Donald Trump is leaning toward broadening US military operations and has discussed the possible seizure of Kharg Island, Iran’s primary oil export terminal. The escalating conflict lifted oil prices to a one-month high and revived concerns over potential supply disruptions in the Middle East, reversing roughly a third of the second-quarter decline that followed the interim peace agreement, which had improved the supply outlook. Meanwhile, continued Ukrainian attacks on Russian fuel production facilities and oil tankers added to worries over tightening global supplies.

Crude oil pared early gains to trade below $79 a barrel on Wednesday, but escalating tensions in the Middle East continued to fuel supply concerns. The move followed another round of US strikes against Iran and the reinstatement of a naval blockade targeting Iranian ports near the Strait of Hormuz. US forces struck dozens of military assets along Iran's coastline and near the strategic waterway during a seven-hour operation aimed at weakening Tehran's ability to disrupt shipping through the Strait of Hormuz. President Trump also pledged to intensify military operations until Iran halts attacks on vessels in the Strait and agrees to reopen the waterway. Meanwhile, on Tuesday, President Trump abandoned plans to impose a 20% fee on cargo transiting Hormuz, arguing that any forgone revenue would be more than offset by future investments from Gulf nations in the US. On the data front, EIA data showed that US crude inventories fell by 1.7 million barrels last week.

Crude oil rose above $79 a barrel on Wednesday, extending gains for a third consecutive session to one-month highs, as escalating tensions in the Middle East continued to fuel supply concerns. The move followed another round of US strikes against Iran and the reinstatement of a naval blockade targeting Iranian ports near the Strait of Hormuz. US forces struck dozens of military assets along Iran's coastline and near the strategic waterway during a seven-hour operation aimed at weakening Tehran's ability to disrupt shipping through the Strait of Hormuz. President Trump also pledged to intensify military operations until Iran halts attacks on vessels in the Strait and agrees to reopen the waterway. Meanwhile, on Tuesday, President Trump abandoned plans to impose a 20% fee on cargo transiting Hormuz, arguing that any forgone revenue would be more than offset by future investments from Gulf nations in the US.