US Oil Update: Futures Drop as US-Iran Conflict Clouds Hormuz Stability

Crude futures retreated in midday trading on Thursday after fresh US-Iran military strikes stoked concerns over the security of the Strait of Hormuz and signaled a potential collapse of the ceasefire between the two countries. Front-month West Texas Intermediate crude futures retreated by 2.6% to $71.61 per barrel, while Brent futures dropped 2.9% to $75.76/bbl. Gelber & Associates strategists said WTI crude is trading at $71.74/bbl, down $1.78/bbl and about 2.4% over the day, as the market continues to move sideways to lower while traders separate crude availability from broader fuel market stress. "Refined products are still flashing tighter conditions, with diesel and gasoline markets carrying more strain than the underlying crude contract as refinery capacity, low product inventories, and Russian fuel disruptions keep margins elevated," Gelber analysts said in a Thursday note. The UKMTO said that commercial vessel traffic through the Hormuz continued at reduced levels on Wednesday as ship operators maintained a cautious approach following recent attacks on merchant vessels and heightened geopolitical tensions in the region. The maritime organization said that traffic.