Geopolitical risks in the Strait of Hormuz drive supply concerns, keeping crude prices elevated despite a slight dip in futures.
West Texas Intermediate crude futures slipped 0.9% to near $79.00 in European trading Thursday but remain close to this month’s high of $80.61. Tightening supply fears persist as the US enforces a blockade on Iranian seaports, while Iranian forces target unauthorized cargo transit through the Strait of Hormuz.
Recent escalation includes warnings from both nations, with Iran threatening expanded conflict and the US signaling potential strikes on Iranian infrastructure. Investors await President Trump’s Friday speech for further policy signals.
Market focus shifts to supply disruptions, with analysts warning of broader energy market volatility if tensions escalate further.