Oil prices moved lower on Thursday after surging in the previous session as investors reacted to fresh U.S. strikes on Iran and the risk of wider supply disruptions in the Middle East.
Brent crude for September delivery fell 0.3% to $77.73 a barrel in early European trading, giving back part of a 5.4% gain from Wednesday, its biggest one-day rise since May 4. West Texas Intermediate for August delivery slipped 0.2% to $73.40 after rising 4.4% a day earlier, its largest daily advance since June 1.
Focus on the Strait of Hormuz
According to the report, U.S. Central Command said the latest strikes were carried out in response to Iranian attacks on commercial shipping near the Strait of Hormuz. President Donald Trump also said earlier that he was no longer interested in a deal with Iran and later described the ceasefire between the two countries as over after another round of regional attacks.
Market participants are watching the Strait of Hormuz closely because it is a key route for global energy flows. Saxo said even limited disruption there can have an outsized effect on near-term pricing, freight costs and overall market sentiment, especially if shipping is threatened or relations between Washington and Tehran deteriorate further.
Source: cnbc.com
