Oil prices edged higher in volatile trading as tensions between the U.S. and Iran escalated, with U.S. forces reportedly sinking several Iranian ships near the Strait of Hormuz. The conflict has disrupted global oil flows, prompting traders to anticipate emergency crude reserve releases from key countries to stabilize markets. Despite a sharp drop in oil prices earlier in the week, the market showed slight recovery, though concerns about further escalation and potential mine deployments in the strait continued to weigh on sentiment. The U.S. Central Command confirmed that American forces had targeted Iranian vessels, including 16 minelayers, following President Donald Trump’s warning that any mines in the strait would be removed “immediately.” However, White House press secretary Karoline Leavitt clarified that the U.S. had not escorted a tanker through the strait, contradicting a false claim by Energy Secretary Chris Wright. The confusion highlighted the uncertainty surrounding military actions and their impact on oil markets. Iran has maintained a steady flow of oil to China through the strait since the conflict began, with TankerTrackers reporting at least 11.7 million barrels shipped to the country. Kpler estimates that around 12 million barrels have passed through the waterway since the war started, underscoring Iran’s efforts to sustain its energy exports despite the risks. Meanwhile, oil prices fluctuated, with U.S. crude and Brent crude recovering slightly after a steep decline earlier in the week, though traders remained cautious about potential disruptions. The geopolitical tensions also spilled into broader markets, affecting investor confidence. U.S. stocks ended the day mixed as traders balanced the pullback in oil prices against fears of further conflict.#iran #strait_of_hormuz #us_central_command #chinese #oracle
