Oil Slumps Amid Uncertainty Over Renewed Strikes Between the U.S. and Iran

Brent and U.S. crude fluctuated between gains of up to two dollars per barrel and losses of one dollar per barrel during the last trading session. The session saw the highest levels for both benchmarks since July 24.

U.S. President Donald Trump said yesterday (Wednesday) that the renewed American campaign against Iran would not last "for a very long time," and that U.S. forces had targeted Iranian radar systems and missiles.

Sikamor added, "If tensions continue to ease, which is highly doubtful, it won't be long before shipping movements through the Strait—via ships that shut down their transmitters and receivers and transfer cargo from one vessel to another—return to the levels we saw at the end of last week."

Initial shipping data released by Kpler yesterday (Wednesday) showed that four crude cargo vessels crossed the Strait of Hormuz, a figure lower than the 10‑day average of about 13 vessels.

Two Iraqi energy officials said yesterday (Wednesday) that Iraq increased its oil exports to about 2.34 million barrels per day in August from roughly 1.35 million barrels per day in July, with expectations of further increases in September.

The United States said on Tuesday that 17 million barrels of oil passed through the Strait of Hormuz on Monday, describing it as the largest volume of crude oil to transit the waterway since the start of the U.S.-Israeli war against Iran.