WASHINGTON (dpa-AFX) - After moving sharply higher in the previous session, crude oil futures showed a modest move back to the downside during trading on Thursday.
WTI crude oil for July delivery edged down $0.11 to $68.04 per barrel after soaring $33.17 to $68.15 a barrel during Wednesday's session. August Brent crude oil was last seen down by $0.08 to $69.71.
While profit taking contributed to a modest pullback by crude oil, selling pressure was subdued amid escalating tension between the US and Iran over the latter's nuclear developments.
Yesterday, President Donald Trump had stated that he was less confident of a US-Iran nuclear deal though he affirmed that the US would not let Iran develop nuclear weapons.
Responding, Iran's defense minister sternly said that if a conflict erupts, Iran would attack US bases.
Consequently, non-essential US embassy staff and their dependants were evacuated from Baghdad and Kuwait yesterday, citing increased security risks. The US is also moving dependants of military personnel out of the Persian Gulf region.
Meanwhile, the UK Maritime Trade Organization has issued a warning to ships to be aware of the threat of increased military activity in the gulf. Reports state that Israel is planning to attack Iran and Iran could retaliate by attacking certain US sites in Iraq.
Adding to uncertainty in the markets, Trump has stated that US would send out letters outlining tariffs to its partner countries, the terms of which they could accept or reject.
On the data front, US Labor Department revealed that the US Producer Prices edged up 0.1 percent for May 2025 compared to forecasts for a 0.2 percent increase.
In addition, the US Labor Department revealed that initial jobless claims in the US held steady at 248,000 for the first week of June contrary to market expectations of a drop to 240,000.
Expectations of a US Federal Reserve interest rate cuts around September have increased, which could propel economic growth and oil demand.
Analysts are monitoring the planned sixth round of US-Iran nuclear talks this weekend.
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