Oil prices fell in Asian trading on Thursday, after three consecutive sessions of gains, as US President Donald Trump indicated that renewed attacks on Iran would not last long, while US officials confirmed the return of energy flows through the Strait of Hormuz.
By 00:49 a.m., Brent crude futures for November delivery had fallen 0.4% to $95.25 a barrel, while West Texas Intermediate (WTI) crude futures had declined 0.2% to $90.80 a barrel.
Both contracts had risen by about 1% on Wednesday, hitting their highest levels in five weeks.
The surge was driven by renewed fears that military escalation between the United States and Iran could further disrupt oil supplies from the Middle East region.
US forces had struck Iran's southern coast, and Tehran responded by launching attacks on US positions in the region, in the most intense exchange of fire between the two countries since July.
However, Trump asserted on Wednesday that the renewed US campaign against Iran would not last long, helping to ease some immediate concerns about market supplies.
He also noted that the United States targeted Iranian radar and missile systems and mine-laying capabilities around the Strait of Hormuz.
The strait remains a focal point for oil markets. U.S. Energy Secretary Chris Wright said 17 million barrels of crude oil passed through the waterway on Monday, the highest volume since the conflict led to a sharp decline in flows.
However, shipping traffic remains erratic. Preliminary data from Kpler showed that only four cargo ships transited the strait on Tuesday, compared to an average of 13 over a ten-day period.
The market also received a positive signal from US inventory data, as commercial stocks of US crude fell by 4.5 million barrels last week, the first decline in five weeks, exceeding analysts' expectations of a slight increase.
Inventories of petroleum products were mixed; gasoline stocks fell by 1.2 million barrels, while distillate stocks, including diesel and heating oil, rose by about 800,000 barrels.
Attention is also focused on the OPEC+ alliance, which is expected to maintain its oil production policy for October unchanged at its meeting on Sunday, following the completion of the planned easing of a 1.65 million barrel per day cut. The OPEC+ alliance had increased its September production quotas by 188,000 barrels per day.
