Crude oil futures retreated on Thursday morning, defying expectations that fresh US military strikes on targets in Iran would immediately trigger a supply shock premium.
Brent crude settled at $84.79, while WTI traded at $79.57, marking a marginal decline in early trading sessions.
The muted reaction indicates that investors are currently pricing in a lower probability of immediate, severe disruption to global shipping routes, despite the heightened geopolitical tension.
The price softening coincides with data from the US Energy Information Administration (EIA) showing a drawdown in US crude oil inventories for the week ending July 10.
While the inventory decline typically supports higher prices, the geopolitical backdrop has dominated sentiment, with traders weighing the risk of supply constraints against the current flow of barrels.
The market appears to be digesting the implications of the strikes without yet assuming a worst-case scenario for Strait of Hormuz transit.