Oil Prices Waver as Renewed U.S.-Iran Tensions Keep Middle East in Focus — Update

By Ronnie Harui and Kimberley Kao

Oil prices wavered Thursday after fresh U.S. strikes on Iran renewed concerns over supply disruptions in the Middle East.

American military forces launched new strikes on Iran Wednesday night, according to the U.S. Central Command, hours after President Trump announced the end of an eight-week ceasefire. The strikes, the second round in just 24 hours, pose the strongest threat yet to derail efforts to reach a permanent peace deal between the U.S. and Iran.

Besides ordering strikes on Tuesday, Trump revoked a license permitting Iran to sell oil on the open market. The latest escalation began earlier this week when Iran launched missiles and drones on three ships transiting the Strait of Hormuz, a critical waterway through which one-fifth of the world's oil is transported.

Oil futures erased earlier gains. Front-month West Texas Intermediate crude oil futures were recently down 0.5% at $73.16 a barrel, while front-month Brent crude oil futures down 0.4% at $77.73 a barrel, according to ICE data.