Oil eases as traders weigh US-Iran conflict risks

(Reuters) – Oil prices ​eased on Thursday as traders weighed escalating tensions between the United States and Iran ‌and the risks to oil supplies moving through the Strait of Hormuz._x000D_
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Brent crude futures were down 58 cents, or 0.68%, to $84.37 a barrel at 08:08 GMT, while U.S. West Texas Intermediate futures were down 18 cents, or 0.23%, to $79.42 a barrel. ​Brent had gained almost $1 earlier in the session and both contracts remain close to one-month ​highs._x000D_
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“The market is still reacting with a surprising degree of calmness,” said Ole Hvalbye, ⁠market analyst at SEB Research._x000D_
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“It seems reasonable that prices could continue to climb towards $90-$95 and maybe even ​touch the $100 mark again and that is because the Strait of Hormuz is repeatedly being disrupted, creating uncertainty ​over oil flows from the Gulf.”_x000D_
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The U.S. struck Iran’s coastal defences and missile sites on Wednesday after reimposing a naval blockade of its ports, while Tehran threatened to shut off more regional energy exports, saying it was engaged in an “existential war” ​with America._x000D_
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The escalation comes after a fragile truce reached in June collapsed, reviving fears of a return ​to full-scale conflict and disrupting energy flows through the Strait of Hormuz, which handled about a fifth of daily global ‌oil and ⁠LNG trade before the war began._x000D_
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Fewer vessels passed through the strait on Wednesday, the first day after the U.S. reimposed its naval blockade on Iran. Seven crossed on Wednesday, down from 13 the previous day._x000D_
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“Markets could remain cautious as they assess immediate supply risks. So far, despite heightened military tensions, oil tankers continue ​to sail through the ​Strait of Hormuz, although ⁠in more limited numbers,” said Wael Makarem, financial markets strategist lead at Exness._x000D_
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Iran said on Thursday the strait was an inviolable “red line”, warning that if U.S. President ​Donald Trump carried out his threat to attack Iran’s infrastructure, it would strike ​all infrastructure across ⁠the Gulf region._x000D_
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Analysts say Iran has signalled it may use its Houthi allies in Yemen to shut the Bab el-Mandeb gateway to the Red Sea, opening a new front against Washington and putting a second of the world’s most ⁠vital ​energy arteries at risk._x000D_
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Elsewhere, Ukraine’s Security Service said on Thursday that ​together with Ukraine’s navy it has struck two Russian “shadow fleet” tankers with naval drones in the Black Sea.