Oil prices rise over 2% to $71.50 after three-day decline, as geopolitical risks in key shipping lanes show mixed signals.
West Texas Intermediate crude rebounded more than 2% to $71.50 on Thursday, halting a three-day slide as short covering lifted prices from a three-month low. The uptick follows easing concerns over traffic through the Strait of Hormuz, though risks persist amid fluid Middle East developments.
Despite the recovery, prices remain near levels last seen at the onset of the US-Iran conflict. Iran’s recent assertion of control over transit routes and reports of vessels being turned away have kept markets cautious. Analysts note 10-11 million barrels per day of Middle Eastern production remain offline, adding pressure on inventories.
A vessel strike off Oman’s coast briefly revived geopolitical risk premiums, though US officials dismissed Iran’s proposed transit tolls. Flows through the strait are gradually normalizing, but supply risks linger without a swift production recovery.