Oil Eases as Traders Reassess Hormuz Risks

Crude oil slipped below $73 per barrel on Thursday after surging 4.4% in the previous session, its biggest daily gain since May, as investors reassessed the impact of renewed US–Iran tensions on Middle East supply. The latest escalation, including additional US strikes on Iran and retaliatory attacks on American bases in the region, has put the Strait of Hormuz back at the center of energy market concerns. Still, the scale of any disruption to oil flows remains unclear. Vessel tracking data showed fewer transits through the strait, with most visible traffic moving along routes approved by Iran, while activity on the US-backed Omani corridor was limited. Traders noted, however, that substantial volumes of crude had continued moving through Hormuz before the ceasefire, with some shipments only appearing in tracking data days later because of weak or disabled signals.

Crude oil held near $73.5 per barrel on Thursday after rising 4.4% in the previous session, its strongest daily gain since May, as markets reassessed the outlook for Middle East supply following renewed US and Iranian hostilities. The latest escalation, including further US strikes on Iran and retaliatory attacks on American bases in the region, has placed the Strait of Hormuz back at the center of energy market concerns. However, the extent of the disruption to oil flows through the key shipping route remains uncertain. Vessel tracking data showed a decline in Hormuz transits, with most visible activity concentrated along Iran approved routes, while the US backed Omani corridor saw limited movement. Despite the slowdown, traders noted that significant volumes of crude had continued to pass through the strait before the ceasefire, with some shipments only becoming visible days later due to limited tracking signals.

Crude oil slipped below $73 per barrel on Thursday, snapping a two-day rally even after the US military confirmed it had carried out strikes on Iran for a second straight day, intensifying tensions and fueling concerns over energy supplies from the Middle East. The US said the attacks were intended to reduce Iran’s ability to threaten navigation through the Strait of Hormuz, while Tehran targeted US military bases across the region in retaliation. President Donald Trump declared that, in his view, the ceasefire is over and warned of additional military action against Iran, including a new blockade. He also cautioned that oil prices could climb further and said future strikes may target Iran’s key export terminal on Kharg Island. The renewed hostilities have heightened fears that the collapse of the interim US-Iran peace agreement could once again disrupt global oil supplies, with the Strait of Hormuz remaining at the center of the conflict.