Oil prices were mixed on Thursday as escalating tensions between the United States and Iran continued to support concerns over Middle East supply disruptions, while signs of potential peace negotiations between Russia and Ukraine limited further gains. Brent crude slipped 11 cents, or 0.12%, to settle at $95.52 per barrel, while WTI gained 29 cents, or 0.32%, to $91.30. Both benchmarks reached six-week highs during the session.

Renewed U.S. strikes on Iran and additional threats from Israel against Iranian infrastructure kept geopolitical risks elevated. The market is watching closely to see whether this week’s military escalation develops into a broader and more sustained conflict that could further disrupt regional energy flows.

Shipping through the Strait of Hormuz remains severely constrained, with just six commodity vessels transiting the waterway on Wednesday, down from 11 the previous day and well below the 10-day average of approximately 13. Iran has also expanded its list of vessels deemed non-compliant and subject to fines, seizure, or detention.

Offsetting some supply concerns, comments from Russian President Vladimir Putin suggesting openness to peace negotiations with Ukraine raised the possibility of reduced attacks on Russian energy infrastructure and a potential normalization of fuel supplies. Iraq has also increased oil exports, reaching approximately 2.34 million barrels per day in August compared with 1.35 million bpd in July.

With global inventories continuing to decline and Hormuz traffic remaining far below normal levels, oil prices remain supported by a substantial geopolitical risk premium despite signs that additional supply from Iraq and a potential easing of Russian disruptions could provide some relief.