Oil prices edged lower on Thursday but remained on track for a second consecutive weekly gain as geopolitical risks in the Strait of Hormuz kept supply concerns elevated. Brent crude futures, the global oil benchmark, declined 0.2% to $93.57 a barrel by 04:11 ET, while U.S. West Texas Intermediate crude futures fell 0.4% to $86.50.
The Brent contract was still on pace to rise more than 5% for the week, extending a two-week surge to roughly 12% as the market weighed the impact of U.S. sanctions threats against Iran and the unresolved status of a June interim peace deal. The U.S. has reiterated plans to impose its "toughest sanctions in history" on Iran, aiming to pressure Tehran into accepting a new agreement, though the measures have drawn limited market impact so far.
Iran has signaled it will maintain restrictions on the Strait of Hormuz, a critical oil transit chokepoint, until the U.S. meets the terms of the expired June deal. Shipping data indicates commercial traffic through the strait remains at a fraction of pre-conflict levels, despite U.S. assertions to the contrary. Major buyer China has largely dismissed the U.S. sanctions threat, reducing the immediate risk of supply disruptions.
Analysts at Deutsche Bank noted that concerns over an energy supply shock continue to influence market sentiment. The latest price action reflects a broader trend of heightened risk premiums in oil markets amid persistent Middle East tensions, even as immediate supply disruptions have not materialized.
