Market Overview
Oil prices remained elevated on Thursday, with Brent crude futures flat at $101.22 per barrel by 22:06 ET (02:06 GMT) and West Texas Intermediate (WTI) futures up 0.3% to $96.33 per barrel.
Conflict‑Driven Supply Concerns
The United States and Iran escalated their maritime confrontations, the worst since the conflict began in February. Iran reported striking ten ships in and around the Strait of Hormuz on Wednesday, while the U.S. said it had sunk five Iranian oil tankers in retaliation. Flow through the Strait of Hormuz continued at only a fraction of pre‑war levels, keeping markets alert to ongoing supply disruptions.
Additional Regional Threats
The Iran‑backed Houthi movement in Yemen attacked Saudi Arabian energy infrastructure during the week, widening concerns beyond Hormuz and potentially further denting global oil supplies.
Analyst Commentary
ANZ analysts noted that the tit‑for‑tat attacks suggest oil flows from the Persian Gulf are likely to remain disrupted for the foreseeable future and that the broadening conflict could deepen supply risks.
Political Statements
U.S. President Donald Trump told reporters the war with Iran would end after the November mid‑term elections. However, a Wall Street Journal report indicated that senior advisers warned the conflict could persist throughout the remainder of Trump’s term, with few signs of de‑escalation.
Market Implication
The combination of heightened geopolitical tension and constrained Gulf oil flows has kept Brent prices pinned above the $100 per barrel threshold.