Oil prices edged lower during Thursday's Asian deals as investors assessed the uncertainty surrounding renewed military strikes between the United States and Iran and the risk of further supply disruptions in the Middle East.
By 3:25 pm AEST (5:25 am GMT), Brent crude futures had fallen 69 cents, or 0.7%, to US$94.94 a barrel, while US West Texas Intermediate (WTI) crude futures were down 47 cents, or 0.5%, at $90.54 a barrel.
ANZ analysts said the risk to vessels transiting the Strait of Hormuz remained high.
"The risk to vessels transiting the Strait of Hormuz remains high. The U.S. struck two Iranian vessels under a new “tanker-for-tanker” policy approved by President Trump, according to Axios.
"Earlier this week, two oil tankers attempting to exit Hormuz were reportedly hit by projectiles. U.S. Treasury Secretary Bessent said that 17mbbl of crude exited Hormuz on Monday.
"Later, U.S. Energy Secretary, Chris Wright, reiterated that figure and added that exports are averaging around 8mb/d."
The latest attacks marked the most substantial exchange of fire between the U.S. and Iran since July, with the conflict now in its seventh month.
U.S. President Donald Trump said on Wednesday that the renewed U.S. campaign against Iran would not continue for "too long" and that American forces had targeted Iranian radar and missile systems.
"We took out all of the new equipment that they tried to build along the Strait of Hormuz - some defensive, some offensive ... It was a very heavy attack last night, and we're prepared to do another one any time we want," Trump said.
Four commodity vessels transited the Strait of Hormuz, below the 10-day average of about 13, Reuters reported, citing preliminary shipping data from Kpler.
Among data releases, the U.S. Energy Information Administration (EIA) reported that commercial crude oil inventories, excluding the Strategic Petroleum Reserve, fell by 4.5 million barrels to 424.5 million barrels, leaving stocks 1% above the five-year average.
Markets had expected a drawdown of 1.1 million barrels.
