Brent crude holds above $100 amid supply risks

• Brent crude futures fell 0.7% to $100.50 a barrel as traders assessed new supply disruption risks from renewed US-Iran attacks.
• WTI crude declined 0.5% to $95.58, while Brent remained nearly 30% above early August lows.
• Analysts said future price movements will depend on the length of supply disruptions and China’s crude demand recovery.

Oil prices eased on Thursday, but Brent crude remained above $100 a barrel as renewed US-Iran attacks increased concerns about further supply disruptions.

Brent crude futures fell 0.7% to $100.50 a barrel by 0619 GMT, while West Texas Intermediate (WTI) crude futures declined 0.5% to $95.58 after prices had risen nearly 30% from early August lows.

"Renewed hostilities between the U.S. and Iran, after nearly a month of relative calm, have once again lifted the geopolitical risk premium in crude oil," said Sugandha Sachdeva, founder of SS WealthStreet.

Iran said it attacked 10 ships near the Strait of Hormuz, while the United States had previously sunk five Iranian oil tankers, increasing concerns about crude export routes and regional supply flows.

Following the developments, Brent crude was trading at $100.50 a barrel, with analysts saying the durability of the price increase will depend on China’s crude imports and the scale of future supply disruptions.

The Strait of Hormuz, which carried about one-fifth of global oil and gas supplies before the conflict, continues to experience reduced flows, while alternative export routes face additional pressure.

Brent crude has remained above $100 since September 3 in the physical crude market, according to LSEG data, while China’s increased crude purchases after months of weaker demand have supported oil markets.