Oil slips as traders weigh lull in US-Iran strikes

Oil prices slipped on Thursday as investors weighed the possibility of a pause in the latest round of US-Iran military exchanges, even as the risk of supply disruption from the Middle East remained elevated.

Brent crude futures fell 43 cents, or 0.45%, to $95.2 a barrel, while US West Texas Intermediate crude eased 24 cents, or 0.26%, to $90.77. The decline followed a volatile previous session in which both benchmarks swung between gains of $2 and losses of $1 a barrel, touching their highest levels since late July.

The latest attacks marked the most significant exchange of fire between Washington and Tehran in months, with the conflict now in its seventh month. However, market sentiment improved on tentative signs that the flare-up was cooling, with no confirmed strikes since around midday Wednesday.

US President Donald Trump said the renewed campaign would not last "too long," adding that American forces had targeted Iranian radar and missile systems. He described the operation as heavy and said further action was possible if needed.

Shipping data from Kpler showed only four commodity vessels transited the Strait of Hormuz, well below the 10-day average of around 13. Iran has also expanded its list of vessels it deems non-compliant, warning of fines, confiscation, or detention for those attempting passage.

The US reported that 17 million barrels of oil moved through the strait on Monday, calling it the largest daily volume since the conflict began. Analysts cautioned that any resumption of hostilities could quickly reverse the current easing in supply flows.