Oil prices retreat after a two-day rally but remain supported by US-Iran tensions and supply concerns in key shipping lanes.
West Texas Intermediate (WTI) crude fell 1.95% to $73.10 on Thursday as investors locked in gains after two days of sharp increases. The pullback followed a period of heightened volatility driven by escalating geopolitical risks in the Middle East.
Prior to the decline, WTI had climbed on fears of supply disruptions after US strikes on Iranian positions triggered retaliatory attacks. Nearly 2.998M barrels of global oil supplies transit daily through the Strait of Hormuz, a chokepoint Iran has repeatedly threatened to close. Analysts note that Russia’s temporary diesel export ban adds to refined product supply concerns.
Markets remain cautious as tensions persist, with no clear path to de-escalation between Washington and Tehran. The geopolitical risk premium continues to underpin prices despite the day’s profit-taking.