US-Israel-Iran War Live News: Oil prices fall slightly after a sharp and volatile session as traders assessed the latest US-Iran military escalation and its impact on global energy supplies. Brent crude futures fell 59 cents, or 0.62%, to $95.04 a barrel, while US West Texas Intermediate (WTI) crude declined 38 cents, or 0.42%, to $90.63.Â
The modest decline came even as concerns around the Strait of Hormuz intensified. The crucial waterway has seen significantly reduced shipping activity since the war escalated, while Iran has expanded restrictions on vessels attempting to transit the strait.
At the same time, attacks involving commercial tankers have added another layer of uncertainty for oil traders and shipping companies.Â
US-Israel-Iran War Live News: Oil Prices Fall Slightly
Brent crude and WTI both moved lower in early trading on Thursday after recording large swings in the previous session. Brent had moved by as much as $2 a barrel on Wednesday, while WTI also experienced sharp intraday volatility as traders reacted to fresh military developments around Iran and the Strait of Hormuz.
Despite Thursday’s decline, oil prices remain considerably higher than before the latest escalation. Brent has stayed close to the $95-a-barrel level, while WTI remains above $90, reflecting the market’s continued concern about possible disruptions to crude exports.
The immediate price movement suggests traders are balancing two competing factors: the possibility of prolonged disruption around Hormuz and uncertainty over how long the latest US-Iran fighting will continue.
US-Israel-Iran War Live News: Traders Assess Fresh US-Iran Supply Risks
The latest military exchanges have brought supply security back to the centre of the oil market. US strikes against Iranian targets near the Strait of Hormuz were followed by Iranian retaliation, increasing fears that the conflict could further interfere with commercial shipping and energy exports.
Oil prices had already jumped by more than $4 a barrel on Tuesday as renewed fighting revived concerns about supply disruptions. Brent settled at $94.65, while WTI closed at $90.22, with both benchmarks reaching their highest closing levels since late July.
Traders are now watching military developments alongside tanker movements. Any further escalation involving commercial vessels, oil infrastructure or the shipping route itself could quickly increase the risk premium built into crude prices.
US-Israel-Iran War Live News: Strait of Hormuz Shipping Activity Drops Sharply
Shipping through the Strait of Hormuz has fallen well below normal levels as companies reassess the risks of sending vessels through the strategic waterway.
Data reported on Thursday showed only a small number of commodity vessels crossing the strait on Wednesday, significantly below the recent 10-day average. The decline highlights how security concerns are affecting physical oil and commodity movements even when the oil market remains open.
The Strait of Hormuz is one of the world’s most important energy routes. Before the conflict, roughly one-fifth of global oil shipments passed through the waterway. Any prolonged reduction in traffic therefore has implications far beyond the Middle East.
US-Israel-Iran War Live News: Iran Expands Restrictions on Tankers Using Hormuz
Iran has increased pressure on commercial shipping by adding 11 more vessels to its blacklist for the Strait of Hormuz. The latest additions take the total number of restricted vessels to 56, according to an update from the Persian Gulf Strait Authority.
The list includes very large crude carriers as well as vessels transporting liquefied natural gas, liquefied petroleum gas and refined petroleum products.
Iran had previously blacklisted 45 tankers in August and warned that vessels accused of violating its navigation rules could face penalties, detention or cargo confiscation. Tehran has also warned vessels cooperating with blacklisted ships, including through ship-to-ship transfers, that they could face restrictions.
US-Israel-Iran War Live News: Tanker Attacks Increase Pressure on Global Oil Supply
Recent attacks involving commercial tankers have further complicated the shipping situation. Saudi Arabia condemned an attack on an oil tanker owned by its national shipping company in the Strait of Hormuz that resulted in two deaths.
Other tanker incidents have also been reported around the waterway in recent days. The attacks have increased concerns among shipping companies about crew safety, insurance costs and the ability to maintain regular voyages through the strait.
The combination of military strikes, vessel restrictions and attacks on commercial shipping creates a difficult operating environment. Even when crude production continues, difficulties moving oil from producers to international buyers can tighten regional supplies and support higher prices.
US-Israel-Iran War Live News: Global Fuel Markets Face Fresh Supply Pressure
The pressure is already visible in refined-fuel markets. Asia’s imports of light and middle distillates fell to about 5.10 million barrels per day in August, the lowest level recorded since the Iran conflict began.
The decline matters because Asian economies are among the biggest consumers of refined petroleum products. Lower imports can leave refiners and fuel distributors with tighter inventories, particularly if shipping disruptions persist.
The impact can also spread beyond crude oil. Restrictions around Hormuz affect shipments of gasoline, diesel, jet fuel, LPG and LNG, meaning prolonged disruption could put pressure on multiple energy markets at the same time.
US-Israel-Iran War Live News: What’s Next?
The next major driver for oil prices will be the direction of the US-Iran conflict and the level of commercial shipping that can safely pass through the Strait of Hormuz.
For now, Brent remains near $95 a barrel and WTI above $90 despite Thursday’s modest decline. Traders will closely monitor further military action, additional tanker incidents, Iran’s restrictions on vessels and changes in the number of ships using the waterway.
If shipping activity continues to weaken, the market could face renewed upward pressure on crude and refined-fuel prices. A sustained improvement in security and a return of tankers to normal routes, however, could reduce some of the geopolitical premium currently supporting oil prices.
