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Crude Oil Prices Hold Steady as Traders Assess Supply Impacts of U.S.-Iran War Escalation

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Crude oil prices were little changed on Thursday as traders assessed the supply impacts of recent renewed exchange of hostilities between the U.S. and Iran.

Brent crude at last look lost 0.7% to US$92.45/barrel and West Texas Intermediate crude was down 0.5% to $89.57/barrel. This comes as efforts to reach a preliminary deal between the two countries intensify despite strikes from both sides, Reuters said in a Thursday report, citing three Iranian sources.

Tehran declared the Strait of Hormuz closed after the U.S. launched strikes against Iran, the report said. Weaker Chinese fuel demand, however, is capping price increases amid falling gasoline and diesel use, as well as lower crude imports.

"The latest escalation adds uncertainty to already fragile ceasefire negotiations and risks prolonged supply disruptions that have constrained global crude, fuel, and LNG exports since the conflict began," Reuters quoted MUFG analyst Soojin Kim as saying.

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