Global crude oil prices edged lower on Thursday as investors assessed the risk of renewed military confrontation between the United States and Iran and its potential impact on oil supplies from the Middle East.
Brent crude futures declined by 43 cents, or 0.45%, to $95.20 per barrel, while US West Texas Intermediate (WTI) crude fell 24 cents, or 0.26%, to $90.77 per barrel.
Market participants continued to closely monitor developments between Washington and Tehran amid concerns that any fresh escalation could disrupt oil production, transportation and exports from the region.
The Middle East remains a major source of global energy supplies, making rising military tensions a key concern for oil traders and investors. Markets are weighing the possibility of supply disruptions against broader economic conditions and expectations for global oil demand.
Despite the geopolitical risks, crude prices moved lower as traders remained cautious and assessed whether the tensions would translate into an actual disruption to regional oil flows.
However, any significant escalation could quickly increase volatility in international energy markets. Disruptions to oil production, transportation routes or energy infrastructure could put renewed upward pressure on crude prices.
Analysts and investors are expected to closely watch US-Iran relations in the coming days as markets assess the potential impact of further military action or threats involving key energy infrastructure.
