Oil prices fall as markets weigh impact of US strikes on Iran

Oil prices fell on Thursday as markets assessed the impact of fresh U.S. strikes on Iran, which could hinder progress on talks to end their war and allow for the full reopening of the key Strait of Hormuz.

Brent crude futures fell $1.03, or 1.32%, to $76.99 a barrel by 0749 GMT. U.S. West Texas Intermediate crude futures lost 88 cents, or 1.2%, at $72.64 a barrel.

Brent and WTI crude futures hit their highest levels since June 22 on Wednesday.

Both crude benchmarks, WTI and Brent, rose more than a dollar in post-settlement trade on Wednesday after the U.S. military began launching fresh strikes on Iran, triggering Iranian attacks on Kuwait and Bahrain in the latest escalation to derail efforts to end the war.

The latest strikes, which the U.S. said were in response to Tuesday’s attack on three cargo ships in the Strait of Hormuz, came hours after President Donald Trump said an interim ceasefire with Iran was “over.”

“Traders are now reassessing the situation, especially as things are very much up in the air regarding oil flows through the Strait of Hormuz,” said Tim Waterer, chief market analyst at KCM Trade.

“The possibility that the next move could be de-escalatory is what’s currently preventing oil from pushing meaningfully higher.”

U.S. President Donald Trump said Iran had called “a while ago” and wanted to make a deal.