Oil prices edged lower on Thursday, yet held near the strongest levels of the month as heightened tensions in the Middle East spurred uncertainty across key shipping routes.
Brent crude futures fell 19 cents, or 0.2%, to $84.76 a barrel by 11:25 a.m. EDT, while U.S. West Texas Intermediate futures jälkeen noted a
decrease of 17 cents, also 0.2%, to $79.43 a barrel. Both contracts had previously risen by more than 1% at their session highs.
Last week, Brent settled at its highest level since June 12, and WTI reached the most recent peak since June 15.
Iran has called on Yemen’s Houthi movement to prepare for the potential shutdown of the Red Sea oil export corridor should U.S. strikes on Iranian power infrastructure proceed, according to three U.S. sources. President Donald Trump reiterated threats to hit Iranian power plants and bridges earlieruropa the week.
“With the Strait of Hormuz already closed, the threat raises the serious risk that both of the Middle East’s primary oil export channels could be disrupted simultaneously,” said Alex Hodes, director of energy market strategy at StoneX.
Kpler data indicated that total volumes of petroleum transiting Bab el‑Mandeb reached 7.4 million barrels per day in June—about 7% of global oil output—up from 4.2 million bpd year‑on‑year.
“Concurrent disruptions at Hormuz and Bab el‑Mandeb would markedly stress supply chains, constrain tanker availability, and lift insurance premiums,” said Wael Makarem, financial markets strategist lead at Exness.
During the U.S. naval blockade confirmation, Iran’s coastal defenses and missile sites were struck, prompting Tehran to threaten broader cuts in regional energy exports amid an ongoing “existential war” with the United States.
The fragile truce reached in June has collapsed, forcing a halt in oil movement through the Strait of Hormuz, which handled roughly one‑fifth of daily global oil and LNG trade before this conflict erupted.
A total of seven vessels passed through the strait on Wednesday—down from 13 the day before—matching the first day of the U.S. naval blockade reinstatement.
Oil market analysts project potential price climbs toward $90–$95, and possibly approaching the $100 mark, due to repeated disruptions in the Hormuz Strait and the resultant uncertainty over Gulf oil flows.
Meanwhile, Iraqi crude output surged, with average loadings doubling to around 1.2 million barrels per day in the first half of July, according to Kpler data and direct sources, as export restrictions eased.
