TOKYO/BEIJING: Oil prices turned lower on Thursday as traders took profits while assessing the risks from a new wave of US strikes on Iranian military installations that stoked fears of renewed full-scale conflict and supply disruptions in the Strait of Hormuz.
The US struck Iran’s coastal defences and missile sites on Wednesday after reimposing a naval blockade of its ports, while Tehran threatened to shut off more regional energy exports, saying it was engaged in an “existential war” with America.
After initially rising for a fourth straight session, Brent crude futures slipped 44 cents, or 0.52 percent, to $84.51 a barrel as of 09:05 a.m. Saudi time, while US West Texas Intermediate futures were down 23 cents, or 0.29 percent, to $79.37 a barrel. Brent had gained almost $1 earlier in the session and both contracts remained close to one-month highs.
“Geopolitical risks remain firmly supportive for oil, but after a strong rally, traders are adopting a wait-and-watch approach,” Phillip Nova senior market analyst Priyanka Sachdeva said. “The focus has shifted from the threat itself to whether there is any tangible disruption to oil flows and how both the US and Iran choose to respond in the coming days.”
