Oil prices held near one-month highs on Thursday as investors assessed the outlook for Middle East supply risks following renewed U.S. warnings to Iran. Brent crude futures rose $2.16, or 2.4%, to settle at $93.78 a barrel, the highest since July 24, while U.S. West Texas Intermediate crude for September delivery gained $2, or 2.3%, to $87.83 a barrel.
U.S. President Donald Trump issued threats against Tehran on Wednesday evening, warning of "economic warfare and isolation on an unprecedented scale" for any country providing support to Iran. The remarks followed a pledge from U.S. Treasury Secretary Scott Bessent to hold a press conference addressing planned measures. The tensions come amid a broader conflict that began in February when the U.S. and Israel launched military strikes on Iran.
Market analysts noted that Iran's control of the Strait of Hormuz—through which roughly one-fifth of global oil consumption transits—remains a key source of leverage. Ritterbusch and Associates said in a market note that new threats were unlikely to prompt Iran to relinquish its position absent major concessions from Washington. "So, the beat goes on with no resolution in sight that would spur a major decline in oil prices back to levels anywhere close to those prior to the war," the advisory firm stated.
Supply disruptions continued to support prices, with Tehran's blockade of the Strait and Iranian attacks on regional energy infrastructure curtailing flows. Shipping traffic through the waterway remained unchanged from the prior day and far below pre-war levels. The United Arab Emirates suspended all financial and economic transactions with Iran during the week, while China, the largest importer of Iranian crude, maintained its purchases despite the heightened tensions.
On the supply side, U.S. crude inventories unexpectedly rose by 4.4 million barrels last week, according to Energy Information Administration data. Distillate fuel inventories, including diesel and heating oil, fell for a third consecutive week, signaling tightness in refined product markets. Energy analyst Alex Hodes at StoneX noted that the unexpected build in crude stocks contrasted with broader supply concerns tied to geopolitical risks.
The conflict, which has resulted in thousands of casualties, has reshaped global energy flows and kept prices elevated despite periodic volatility tied to diplomatic developments.
