Oil prices today: Crude edges lower after sharp gains as Iran–US tensions keep markets on edge

Oil prices slipped slightly on Thursday after strong gains in the previous session, as investors weighed stalled peace talks between Iran and the United States and ongoing restrictions on key shipping routes, including the Strait of Hormuz.Brent crude futures fell 15 cents to $101.76 a barrel, after crossing the $100 mark for the first time in over two weeks on Wednesday.West Texas Intermediate (WTI) slipped 14 cents to $92.82. Both benchmarks had surged more than $3 in the previous session.The earlier rally was driven by a sharper-than-expected draw in US fuel inventories and continued uncertainty over diplomatic progress between Washington and Tehran.Markets remain focused on geopolitical risk as both the US and Iran continue restricting maritime movement through the Strait of Hormuz, a critical corridor that previously handled around 20% of global oil and liquefied natural gas flows.Tensions escalated further after Iran seized two ships in the strait on Wednesday, tightening control over the waterway. At the same time, the US has maintained a naval blockade on Iranian trade routes, with Iranian officials insisting any ceasefire remains conditional on lifting those restrictions.Iranian parliamentary speaker Mohammad Baqer Qalibaf has said a full ceasefire would only be meaningful if the blockade is removed, underscoring the continued deadlock.According to shipping and security sources, US forces have also intercepted at least three Iranian-flagged tankers in Asian waters in recent days, redirecting them away from areas near India, Malaysia and Sri Lanka.Meanwhile, US President Donald Trump has extended the ceasefire following a request from Pakistani mediators, but has not set a timeline for its expiry.The White House has indicated that the pause in hostilities remains open-ended as long as negotiations continue.On the supply side, US energy exports have surged to record levels. Total exports of crude oil and petroleum products rose by 137,000 barrels per day to 12.88 million bpd, as global buyers turned to American supplies amid disruptions linked to the Iran conflict, according to the Energy Information Administration (EIA).However, domestic inventory data showed mixed signals. Crude stocks rose by 1.9 million barrels, compared with expectations of a 1.2 million-barrel draw, while gasoline inventories fell by 4.6 million barrels and distillate stocks dropped by 3.4 million barrels.