Brent crude prices climbed more than $1 a barrel on Thursday in a volatile session as investors swung between focusing on escalating US attacks on Iran and hopes for a resolution that may resume shipping in the Strait of Hormuz.
Brent futures rose $1.48, or 1.63%, to $92.22 a barrel in early trade. US West Texas Intermediate (WTI) crude gained 43 cents, or 0.51%, to $84.89 a barrel.
US strikes impact oil prices
Both contracts had erased some losses earlier in the session after settling about 7%-8% higher on Wednesday in one of the sharpest daily price spikes during the Iran war as US President Donald Trump threatened to hit Iran “very hard” after an Iranian missile attack on Tuesday on a US base in Jordan.
The US carried out two hours of attacks on Iran at 8pm ET (0000 GMT), the US Central Command said.
Supply disruptions and market focus
On Wednesday, the U.S. and Saudi Arabia attacked Iran-backed paramilitary forces in Iraq, the first time that Saudi had publicly joined US air strikes, in retaliation for drone attacks on Saudi oil targets launched from Iraq.
That ended a lull in US strikes on Iran that began over the weekend.
Diplomatic efforts and price trends
“Europe is waking up to the news of the US attacks, so buying up,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.
In another blow to supply, the Caspian Pipeline Consortium, quoted by the Russian news agency Interfax, said on Thursday that it had suspended oil loadings following a drone attack on a tanker.
However, analysts said investor focus was on the volume of oil exiting the key chokepoints and possibility of a diplomatic breakthrough.
“Trump’s ‘hit hard’ rhetoric caused the price spike immediately but looks like the market has fully priced (that) in and (is) considering the ‘TACO’ possibility right now,” said Lin Ye, vice president of commodity markets, oil, at Rystad Energy, referring to the acronym Trump Always Chickens Out.
Ye said the market is following a pattern: geopolitical headlines are triggering rapid price spikes, but those gains are often short-lived as actual supply flows and parallel diplomatic efforts tend to determine how long those upward price moves persist.
Iran’s Fars news agency said a Qatari LNG tanker passed through the Iran-designated route in the Strait of Hormuz with Iran’s permission.
The Al Areesh tanker, which loaded a cargo at Qatar’s Ras Laffan terminal around July 4-6, sailed out of the strait overnight on July 29, according to Kpler and LSEG data.
- Brent crude prices rose $1.48 to $92.22 a barrel and US WTI crude gained 43 cents to $84.89 a barrel on Thursday amid volatile trading.
- The US conducted two hours of attacks on Iran following an Iranian missile strike on a US base in Jordan, escalating tensions and influencing oil prices.
- Saudi Arabia joined US air strikes against Iran-backed paramilitary forces in Iraq for the first time, retaliating against drone attacks on Saudi oil targets.
- The Caspian Pipeline Consortium suspended oil loadings after a drone attack on a tanker, further impacting supply concerns.
- Iran's Fars news agency reported a Qatari LNG tanker passed through the Strait of Hormuz with Iran's permission, indicating some levels of safe passage amidst tensions.
Brent crude prices climbed more than $1 a barrel on Thursday in a volatile session as investors swung between focusing on escalating US attacks on Iran and hopes for a resolution that may resume shipping in the Strait of Hormuz.
Brent futures rose $1.48, or 1.63%, to $92.22 a barrel in early trade. US West Texas Intermediate (WTI) crude gained 43 cents, or 0.51%, to $84.89 a barrel.
Both contracts had erased some losses earlier in the session after settling about 7%-8% higher on Wednesday in one of the sharpest daily price spikes during the Iran war as US President Donald Trump threatened to hit Iran "very hard" after an Iranian missile attack on Tuesday on a US base in Jordan.
The US carried out two hours of attacks on Iran at 8pm ET (0000 GMT), the US Central Command said.
On Wednesday, the U.S. and Saudi Arabia attacked Iran-backed paramilitary forces in Iraq, the first time that Saudi had publicly joined US air strikes, in retaliation for drone attacks on Saudi oil targets launched from Iraq.
That ended a lull in US strikes on Iran that began over the weekend.
"Europe is waking up to the news of the US attacks, so buying up," said Vandana Hari, founder of oil market analysis provider Vanda Insights.
In another blow to supply, the Caspian Pipeline Consortium, quoted by the Russian news agency Interfax, said on Thursday that it had suspended oil loadings following a drone attack on a tanker.
However, analysts said investor focus was on the volume of oil exiting the key chokepoints and possibility of a diplomatic breakthrough.
"Trump’s 'hit hard' rhetoric caused the price spike immediately but looks like the market has fully priced (that) in and (is) considering the 'TACO' possibility right now," said Lin Ye, vice president of commodity markets, oil, at Rystad Energy, referring to the acronym Trump Always Chickens Out.
Ye said the market is following a pattern: geopolitical headlines are triggering rapid price spikes, but those gains are often short-lived as actual supply flows and parallel diplomatic efforts tend to determine how long those upward price moves persist.
Iran's Fars news agency said a Qatari LNG tanker passed through the Iran-designated route in the Strait of Hormuz with Iran's permission.
The Al Areesh tanker, which loaded a cargo at Qatar's Ras Laffan terminal around July 4-6, sailed out of the strait overnight on July 29, according to Kpler and LSEG data.
