Oil prices retreated in Asian trading Thursday after three straight days of gains, as President Donald Trump said renewed attacks on Iran would not last long. The pullback came even as Iran struck U.S. bases in Kuwait, keeping the Strait of Hormuz – and its link to global energy supply – in focus.
Oil prices edged lower in Asian trading Thursday after climbing for three straight sessions, as investors assessed the latest developments in the U.S.-Iran conflict. The retreat followed comments from President Trump downplaying the risk of a prolonged escalation.
Brent and WTI slip from five-week highs
Brent crude futures fell 0.4% to $95.25 a barrel, while WTI crude futures slipped 0.2% to $90.80. Both contracts had gained nearly 1% on Wednesday, reaching their highest levels in about five weeks, before easing as U.S. officials pointed to a recovery in energy flows through the Strait of Hormuz.
Trump said renewed attacks on Iran would not last long, a comment that helped ease some of the pressure that had driven crude higher earlier in the week.
Iran strikes U.S. bases in Kuwait
Even so, tensions in the Middle East stayed elevated. Iran launched missile and drone strikes at U.S. bases in Kuwait, state-run Press TV reported late Wednesday. The Kuwaiti Armed Forces said its air defense systems were intercepting hostile targets, without identifying their source.
The strikes follow U.S. strikes on targets in Iran near the strait and subsequent Iranian drone and missile attacks on U.S. infrastructure across the Gulf, marking a renewed escalation between Washington and Tehran after a period of relative calm.
Hormuz risk still shadows the Fed's rate path
Oil remains one of the biggest links between the Iran conflict and financial markets. If supplies through Hormuz keep recovering, some of the recent inflation pressure could ease.
Source: Investing.com
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