Signs of easing tensions between the US and Iran lead to a slight decline in oil prices

1. International oil prices edged lower on Thursday, with Brent crude futures falling 0.62% to $94.61 per barrel and WTI crude futures down 0.9% to $90.12 per barrel. The renewed conflict between the United States and Iran has sparked concerns about disruptions to Middle Eastern oil supplies, but investors are still weighing uncertainties surrounding developments in the situation. On the previous trading day, both major contracts experienced dramatic intraday fluctuations, with price differences ranging from $2 to $3.2. IG analysts pointed out that since Wednesday's Asian session, there have been no confirmed firefight incidents, and the latest escalation appears to be showing initial signs of easing. U.S. President Trump stated that the latest U.S. military action against Iran would not last “too long,” and that U.S. forces have targeted Iran's radar and missile systems.3. Analysts said that if the easing trend can persist, the volume of crude oil shipped from the Strait of Hormuz via shadow vessels and ship-to-ship transfers may quickly return to levels seen at last weekend. However, Iran continues to expand its list of “violating vessels,” adding more ships; vessels attempting to pass through the Strait will face fines, confiscation, or detainment. Preliminary data from Kpler show that only four commodity ships passed through the Strait of Hormuz on Wednesday, well below the 10-day average of around 13 vessels.4. There are new changes on the supply side. Two Iraqi energy officials said Iraq’s crude oil exports in August have increased from about 1.35 million barrels per day in July to about 2.34 million barrels per day, with further increases expected in September, mainly due to significant discounts and Iran's approval for Iraqi tankers to pass through the Strait of Hormuz. The United States stated that 17 million barrels of crude oil passed through the Strait of Hormuz on Monday, marking the highest record since the outbreak of conflict.