Singapore: Oil prices remained largely unchanged on Thursday as concerns over a possible United States military strike on Iran eased, calming markets that had been unsettled by recent geopolitical tensions.
Brent crude was trading around 63 to 64 dollars a barrel, while US West Texas Intermediate hovered near 59 to 60 dollars. Prices had risen earlier this month on fears that unrest in Iran and strong rhetoric from Washington could disrupt oil supplies from the Middle East. Those fears have now softened.
Market sentiment shifted after US President Donald Trump signalled that the situation in Iran appeared to be stabilising, reducing expectations of immediate military action. Diplomatic efforts and pressure from regional allies have also contributed to a sense that Washington is likely to rely more on sanctions and political measures rather than force, at least for now.
Analysts say this has removed part of the risk premium that had been built into oil prices. Traders are once again focusing on supply and demand fundamentals instead of conflict driven fears.
Additional pressure on prices has come from rising US crude and gasoline inventories, which suggest that global supply remains comfortable. Oil exports from countries such as Venezuela have also picked up, adding more barrels to the market.
Despite the calmer mood, experts warn that the situation remains fragile. Any sharp escalation involving Iran or threats to key shipping routes such as the Strait of Hormuz could quickly push prices higher again.
For now, the oil market appears balanced, with steady demand growth expected through 2026 as global economic activity holds up. However, traders remain alert, knowing that geopolitical developments can rapidly change the outlook.