Oil prices steadied on Thursday after a three-day rally, as US President Donald Trump suggested renewed strikes on Iran may not last long while officials pointed to continued crude flows through the Strait of Hormuz.
Brent crude traded near $95 a barrel after climbing more than 8% over the previous three sessions. West Texas Intermediate was below $91. Trump, when asked how long the US bombing campaign could continue, said he did not think it would last “too long”, while adding that the US was prepared to conduct another strike.
Iran retaliated to the renewed US attacks with drone and missile strikes on American bases across the Middle East, continuing a pattern seen during the conflict.
Despite the fresh military escalation, oil's gains have been tempered by indications that crude is still moving through the Persian Gulf. US Energy Secretary Chris Wright said 17 million barrels of oil exited the Strait of Hormuz on Monday, with flows averaging around 8 million barrels a day.
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That supply is helping prevent a more severe squeeze in global crude markets. Chevron CEO Mike Wirth said the oil market is moving closer to balance as supplies continue to leave the Persian Gulf, although he flagged the renewed US-Iran hostilities as a concern.
The supply picture is also being watched through US inventories. US crude stockpiles fell 4.5 million barrels last week, according to Energy Information Administration data, marking the first weekly decline since late July. Inventories at Cushing, Oklahoma, rose marginally to 22.5 million barrels, while gasoline stocks declined.
Oil prices are now nearly 60% higher this year, with refined products such as diesel posting even sharper gains amid simultaneous disruptions linked to the Middle East and Russia-Ukraine conflicts.
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