Brent and WTI crude futures retreat slightly after rising on Wednesday amid renewed military strikes and shipping risks in the Strait of Hormuz.
Oil prices edged lower on Thursday, paring earlier gains as investors weighed escalating US-Iran hostilities against prospects for a lasting ceasefire. Brent crude fell 11 cents to $77.91 a barrel, while US WTI dropped 38 cents to $73.14.
Both benchmarks had climbed more than $1 on Wednesday after the US launched strikes on Iran, prompting retaliatory attacks on Gulf states. The renewed violence strained a three-week ceasefire and raised concerns over shipping disruptions in the Strait of Hormuz.
New York Fed President John Williams noted markets expect oil prices to decline over the next 6-12 months, calling the outlook reasonable. Analysts cited persistent nervousness, with some war underwriters advising shipping firms to pause voyages through the critical waterway.