Oil prices moved lower on Thursday, ending a three-day advance, as traders weighed developments in the Middle East against fresh evidence of tightening crude supplies in the United States.
Brent crude, the international benchmark, fell 1.5% to $96.30 per barrel, while U.S
West Texas Intermediate (WTI) crude declined 1.2% to $94.84 per barrel. The retreat followed a strong rally in the previous session, when both benchmarks gained nearly 2% and climbed to their highest levels in more than a week. Ceasefire Agreement Offers Relief but Uncertainty Persists Energy markets remained heavily influenced by geopolitical developments surrounding the conflict involving the United States and Iran, which has added a significant risk premium to crude prices.
Recent tensions included reports of Iranian missile strikes targeting Kuwait and Bahrain, as well as U.S. military operations against Iran’s Qeshm Island near the Strait of Hormuz. Meanwhile, Israeli forces have continued military activity in southern Lebanon against Hezbollah-controlled positions. Late Wednesday, Israel and Lebanon agreed to move forward with a fragile ceasefire arrangement.