Brent crude surged past $92 per barrel Thursday, while WTI hovered near $85 following fresh US military actions against Iran. The strikes reignited geopolitical worries around Middle East oil production and vital shipping lanes, pushing prices upward alongside sharply falling US crude inventories.
Brent futures gained $1.48, climbing 1.6% to $92.22 early Thursday. WTI crude added 43 cents, marking a 0.5% increase to $84.89 after both benchmarks had settled 7-8% higher the previous day. The renewed US attacks on Iran broke a pause in strikes, restoring some of the conflict premium traders pay for risk of disrupted supply or transportation.
Key Levels and Inventory Impact
Brent bounced back strongly from lows near $70 in early July, briefly nearing $100 before retracing and pushing back toward $91.60. The $90 mark is now a critical technical support. Staying above it keeps the uptrend alive, with next hurdles at $95 and $100. Falling below $88 could trigger a loss of momentum and test mid-$80 levels.
WTI also recovered from July lows around $68-$70, now holding firm above $80. This level has turned into key support; maintaining it opens a path to retest $90. A drop below $80 might signal a stall in the recent rally, though the $110 range remains a longer-term target not yet in sight.
US crude stocks dropped a sizable 7.2 million barrels to 404.5 million for the week ending July 24, much larger than the expected 1.3 million barrel drawdown. These are the lowest commercial inventories since 2018, tightening supply and fueling price gains.
Despite geopolitical risks, shipping through strategic chokepoints like the Strait of Hormuz and Bab el-Mandeb continues. MarineTraffic reported 53 vessel crossings on July 28, including 12 through Hormuz and 41 at Bab el-Mandeb, indicating these routes remain operational even amid rising tension.
