Oil Prices Fall as US-Iran Conflict Enters Third Day Around Hormuz Strait

US and Iran engaged in military conflict for three days around the Hormuz Strait, yet international oil prices fell on the 9th (US Eastern Time). WTI crude for August delivery dropped $1.44 (1.96%) to close at $72.08 per barrel, while Brent crude for September fell $1.72 (2.20%) to $76.30 per barrel. The price decline occurred as risk appetite spread among traders expecting the conflict to be short-lived, despite reduced tanker traffic through the strategic waterway.

Oil Prices Drop Despite Reduced Hormuz Strait Traffic

On the 9th (US Eastern Time) at the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for August delivery closed at $72.08 per barrel, down $1.44 (1.96%) from the previous session. Brent crude for September delivery finished at $76.30 per barrel, down $1.72 (2.20%) from the prior close.

Tanker traffic through the Hormuz Strait decreased significantly due to the resumed conflict, yet market participants tilted toward risk appetite. Andy Lipow, president of Lipow Oil Associates, stated, "There are periods of conflict between relatively calm times when tanker traffic is allowed. The market seems to be reflecting this 'new normal' in oil prices."

US Strikes Iran Nuclear Plant Site and Railway Bridge

The military conflict between the US and Iran around the Hormuz Strait continued for three days. The US conducted large-scale airstrikes on Iran, targeting the country's only commercial nuclear power plant site and a railway bridge.

Iran responded by launching missiles at US military bases in neighboring countries. According to US CNN, the US military is currently not conducting military operations in Iran. It remains unclear whether the airstrikes have concluded or are in a temporary pause.

Analysts Describe Market Acceptance of Conflict Pattern

US President Donald Trump stated the strikes would be brief when ordering the airstrikes, supporting market expectations of a short-lived conflict. Citi Bank analysts commented, "Both the US and Iran have too much to lose if the conflict continues to escalate. Trump cares about strong stock prices and a stable bond market, so he will likely return to the negotiating table relatively soon."

FAQ

What happened to oil prices on the 9th despite the US-Iran conflict?

WTI crude for August delivery fell $1.44 (1.96%) to $72.08 per barrel, and Brent crude for September dropped $1.72 (2.20%) to $76.30 per barrel on the 9th (US Eastern Time), despite ongoing military conflict between the US and Iran around the Hormuz Strait.

What targets did the US strike in Iran during the three-day conflict?

The US conducted large-scale airstrikes on Iran, targeting the country's only commercial nuclear power plant site and a railway bridge. Iran responded by launching missiles at US military bases in neighboring countries.