Oil is largely muted on Thursday despite President Donald Trump's threats to conduct new strikes against Iran and the seizure of key infrastructure.
Brent crude, the international benchmark, dropped 0.25% and clocked in at $92.87 per barrel at 10:52 a.m., while West Texas Intermediate, the U.S. benchmark, climbed 0.19% and stood at $90.20 at the same time.
Trump anticipated new strikes against Iran on Thursday and said the U.S. will be "taking Kharg Island, and other oil infrastructure points, and assume total control of their Oil and Gas Markets."
"The United States will be hitting Iran (Whose Navy, Air Force, Radar, Anti Aircraft, and all other forms of Defense, together with most of its offensive capability, are GONE!), VERY HARD TONIGHT. At some point in the not too distant future, we will be taking Kharg Island, and other oil infrastructure points, and assume total control of their Oil and Gas Markets, much like we have with Venezuela, which is working out brilliantly for both Venezuela and the United States of America," Trump said in a social media publication.
The U.S. launched several rounds of strikes against Iran over the past days as tensions continue to escalate.
Iranian officials have also been reacting with defiance to the latest U.S. attacks. The country's foreign ministry issued a statement on Thursday condemning them and calling them a "flagrant violation" of international law that "effectively rendered the April 8 ceasefire meaningless."
The document went on to say that the Trump administration will be responsible for the "extremely dangerous consequences" of the attacks.
Elsewhere, the Persian Gulf Strait Authority (PGSA), a newly created entity aimed at managing navigation through the Strait of Hormuz and charging fees for it, said the key waterway would be "closed until further notice."
The body cited "tensions caused by the aggressive U.S. forces" and the Iranian Army's decision to close the Strait. It asked for "applicants who have obtained transit permits to remain patient and await further notice."
At the same time, Reuters reported that efforts to reach an interim deal to end the war have intensified even amid the attacks, with both sides discussing the release of frozen Iranian funds.
Reuters detailed that Washington and Tehran are exchanging messages about the release of frozen Iranian funds, part of a memorandum of understanding to halt the war.
Iranian sources told the outlet that a political understanding has been reached, but there are some details still being discussed, particularly related to the mechanism to release the funds from foreign banks.
