Brent Crude Holds Near $106 as Conflict Escalates and US Inventories Drop
Brent crude futures remained near $106 per barrel on Thursday, maintaining recent gains amid expanding geopolitical tensions in key energy corridors and a steep drop in US stockpiles. A container ship sank in the Strait of Hormuz following an attack by unidentified projectiles on Wednesday, while Iran-backed Houthi forces continued missile and drone strikes across Saudi Arabia. Increased maritime hostilities have prompted a growing number of oil tankers to avoid primary loading zones, disrupting crude export operations.
Supply risks intensified further after Russia accused Ukraine of targeting two domestic oil refineries on Wednesday, including the Ryazan plant capable of processing 400,000 barrels per day. The alleged strikes breach an energy ceasefire previously announced by US President Donald Trump. Meanwhile, industry inventory data revealed that US crude stockpiles dropped by 11.1 million barrels last week, marking the largest drawdown since June 2025.
Investors are monitoring whether maritime shipping threats in the Middle East worsen and how refinery damage in Eastern Europe impacts regional output. Markets also remain focused on incoming energy stock reports and potential diplomatic shifts surrounding regional ceasefires to gauge global supply balance.
Key points
- Brent crude traded near $106 per barrel on Thursday as supply disruption concerns grew.
- A container ship sank in the Strait of Hormuz on Wednesday following projectile strikes.
- Iran-backed Houthi forces carried out missile and drone attacks across Saudi Arabia.
- Russia accused Ukraine of striking two oil refineries, including the 400,000-barrel-per-day Ryazan facility.
- US crude stockpiles dropped by 11.1 million barrels last week, the largest fall since June 2025.
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How we writeDisclaimerQuestions and answers
Why are oil prices holding near $106 per barrel?
Crude prices are holding near $106 per barrel due to rising supply concerns caused by Middle East maritime attacks, refinery strikes in Eastern Europe, and a large drop in US crude inventories.
What caused recent supply disruptions in the Middle East?
A container ship sank in the Strait of Hormuz after being struck by projectiles, while Iran-backed Houthi forces continued missile and drone attacks in Saudi Arabia, leading tankers to avoid loading areas.
How much did US crude inventories fall last week?
US crude inventories decreased by 11.1 million barrels last week, which marks the largest weekly decline since June 2025.