West Texas Intermediate crude nudged upward after Iran announced fresh military action against American military installations, although the commodity struggled to find clear direction in a session marked by volatility. The US benchmark ultimately settled near the $91 per barrel threshold, while Brent experienced a slight decline, closing around $95.50 and snapping a three-day winning streak.

The resurgence of tit-for-tat military exchanges between Washington and Tehran has cast a shadow over the recent recovery in crude shipments transiting the Strait of Hormuz, a critical artery for global oil flows. According to Iran's official news agency, IRNA, the Iranian military confirmed on Thursday that it had targeted US bases located in Kuwait and the United Arab Emirates. Kuwait reported that it had responded to threats involving missiles and drones, while the UAE has yet to disclose any details regarding the incident.

Adding to the market's downward pressure, Saudi Arabia opted to keep the official selling price for its flagship crude grade unchanged for the upcoming month. This decision signaled a less constrained supply picture than some market participants had anticipated, prompting a retreat in oil prices.

Meanwhile, the risk of a broader regional conflict continues to escalate. Israel issued a stern warning, stating that if Iran were to launch an attack against it, Israel would no longer consider itself bound by existing limitations when conducting operations against Iranian targets.

In terms of settlements, WTI for October delivery rose by 0.3% to close at $91.30 per barrel. In contrast, Brent for November delivery slipped 0.1% to settle at $95.52 per barrel.