Oil prices retreat slightly as traders weigh escalating US-Iran military actions and potential supply risks.
West Texas Intermediate crude trades near $82.00, down from recent multi-week highs, as markets assess ongoing US-Iran hostilities. The US has conducted airstrikes for ten consecutive days following the deaths of three service members, while Iran claims strikes on US military targets in Bahrain and Kuwait.
Prices remain elevated due to fears of supply disruptions, though traders await the American Petroleum Institute’s weekly crude inventory report. A larger-than-expected draw could support prices, while a build may weigh on sentiment. Yemen’s Houthi rebels also declared a maritime embargo on Saudi Arabia, adding to regional risks.
Market reaction has been muted in early trading, with focus shifting to inventory data and further geopolitical developments.