Oil prices fell amid uncertainty surrounding U.S. and Iranian strikes

Oil prices edged lower on September 3. This came as investors assessed the uncertainty surrounding the resumption of strikes between the United States and Iran, which could disrupt supplies from the Middle East, UNN writes, citing Reuters.

How prices changed

Brent crude oil futures fell 59 cents, or 0.62%, to $95.04 per barrel at 05:09 GMT (08:09 Kyiv time).

West Texas Intermediate crude oil futures fell 38 cents, or 0.42%, to $90.63.

During the previous trading session, Brent and WTI prices fluctuated between a $2-per-barrel gain and a $1-per-barrel decline. Session highs for both benchmarks reached their highest levels since July 24.

What are the reasons

Oil prices fell amid earlier signs of a de-escalation in the latest flare-up, as there had been no confirmed exchanges of fire since midday Wednesday Sydney time, IG analyst Tony Sycamore said in a note.

The latest strikes marked the largest exchange of fire between the United States and Iran since July, and the war has now entered its seventh month.

U.S. President Donald Trump said on September 2 that the renewed U.S. campaign against Iran would not last "too long" and that American forces had struck Iranian radar and missile systems.

"We destroyed all the new equipment they were trying to install along the Strait of Hormuz – some defensive, some offensive… It was a very powerful attack last night, and we are ready to conduct another one anytime we want," Trump said.

The new U.S. campaign against Iran will not last too long - Trump03.09.26, 02:02 • 17164 views

What analysts say

"If this easing persists, and that is a big question, oil shipment volumes through the Strait of Hormuz via so-called \"shadow vessels\" and ship-to-ship transfers will soon return to the levels we saw at the end of last week," Sycamore said.

According to preliminary data from Kpler published on Wednesday, four commercial vessels passed through the Strait of Hormuz, below the 10-day average of about 13.

What actions has Iran taken

Iran has also added several more vessels to the list of those it considers, non-compliant and that could face fines, confiscation or detention if they attempt to pass through the strait.

Iraq increased its oil exports in August to approximately 2.34 million barrels per day from around 1.35 million barrels per day in July, two Iraqi energy ministry officials said on Wednesday. Exports are also expected to rise in September, as significant discounts and Iran's approval for Iraqi tankers to pass through the Strait of Hormuz encouraged buyers.

How much oil passes through the Strait of Hormuz

On Tuesday, the United States said that 17 million barrels of oil had passed through the Strait of Hormuz on Monday, calling it the largest volume of oil to pass through the waterway since the start of the American-Israeli war against Iran.