Crude Oil Prices Stay Elevated on Multiple Market Concerns
Crude oil prices remained elevated in the global commodity market amid multiple concerns following renewed military exchanges between the US and Iran.
The latest twist to Washington and Tehran’s relationship kept oil markets on edge Friday, with persistent concerns over Middle East supply disruptions offsetting inflation fears that continued to restrain prices.
Brent crude edged slightly lower while US benchmark WTI posted modest gains as traders balanced geopolitical risks surrounding the Strait of Hormuz against the prospect of higher interest rates weighing on fuel demand.
The international benchmark Brent crude traded at $76.27 per barrel, down about 0.04% from the previous close of $76.30. US benchmark West Texas Intermediate (WTI) increased about 0.01% to $72.09 per barrel from $72.08 in the previous session.
The market remained on edge as Washington and Tehran exchanged fresh military blows, reviving concerns about oil supplies from the Middle East.
Iran’s Islamic Revolutionary Guard Corps (IRGC) said Thursday it launched a missile strike targeting the US command-and-control centre in West Asia and the Al-Azraq Air Base in Jordan.
In a statement carried by Fars News Agency, the IRGC said its Aerospace Force fired 10 ballistic missiles targeting the two sites, claiming the attack “destroyed” the two facilities.
“If the aggression of the US terrorist army is repeated, other US bases in the region will not be spared from our heavy fire,” it warned.
Jordan earlier said that its air defenses intercepted and downed eight missiles launched from Iran toward the kingdom.
Iranian media also reported explosions in the southern provinces of Bushehr and Hormozgan, while local authorities said they were investigating whether the blasts were caused by air defense systems or incoming missiles.
Earlier this week, the US military carried out strikes on several targets in southern Iran.
The Revolutionary Guard also warned that US efforts to influence shipping through the Strait of Hormuz could undermine the gradual reopening of the strategic waterway, adding to concerns over one of the world’s most important energy transit routes.
About 20% of global oil trade passes through the Strait of Hormuz, making any threat to shipping there a key driver of crude prices.
Meanwhile, the US military said Thursday that its forces ensured the safe passage of more than 800 commercial vessels through the Strait of Hormuz since early May.
“Since early May, U.S. forces have helped facilitate the successful transit of more than 800 commercial vessels and 380 million barrels of crude oil through the vital international trade corridor,” the US Central Command (CENTCOM) said in a post on the US social media platform X.
Supply concerns were also reinforced by developments in Russia, where Ukrainian attacks have continued to hit energy infrastructure. Ukrainian President Volodymyr Zelenskyy said Kyiv struck oil storage facilities in Russia’s Stavropol and Tver regions, as well as an oil pumping station in Ufa.
A report by the Oxford Institute for Energy Studies said Ukrainian drone attacks have disrupted facilities representing about 81% of Russia’s refining capacity this year, pushing refinery throughput to its lowest level in 21 years.
According to the report, Russia’s refinery processing fell from 4.6 million barrels per day in March to 3.7 million barrels per day in June as repeated strikes increasingly targeted complex refining units.
Even as geopolitical tensions supported prices, gains remained limited as investors worried that higher energy costs could fuel inflation, keep interest rates elevated and ultimately weaken oil demand.
