FX.co ★ Oil Prices Swing

Crude oil prices were highly volatile on Thursday, fluctuating around $91 per barrel and hovering near their highest levels in more than a month. Investors remained focused on developments in the Middle East, particularly the latest strikes and their implications for oil flows through the Strait of Hormuz. Hostilities resumed earlier this week for the first time since July, with the United States launching strikes on Iran and Tehran responding with attacks on US bases in Bahrain, Jordan, Kuwait, and Iraq.

At the same time, US President Trump said on Wednesday that the renewed conflict in the region was unlikely to last “too long.” Despite the escalation, there were indications that crude supplies were still reaching global markets. Six commodity tankers passed through the Strait of Hormuz on Wednesday, down from 11 on Tuesday and below the 10-day average of nearly 13, according to Reuters. Separately, Iraq’s oil exports rose to around 2.34 million barrels per day (bpd) in August, with further increases expected in September.