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Global crude benchmarks diverged on Thursday, with Brent edging lower as investors weighed potential US sanctions relief against escalating Middle East tensions, while US West Texas Intermediate (WTI) rallied on a sharper-than-expected draw in US crude inventories.

Brent crude prices held near $106 a barrel on Thursday as potential US sanctions relief raised the prospect of improved oil flows, while escalating Middle East hostilities kept a geopolitical risk premium in the market. A larger-than-expected draw in US crude inventories lent additional support, although efforts to release emergency oil stocks offered a counterweight to supply concerns.

WTI pushed closer towards $100/barrel mark, supported by an 8.6 million-barrel draw in US crude inventories for the week ended 9 October. The decline far exceeded analysts’ expectations for a 288,000-barrel draw, bringing stocks to 415.6 million barrels, according to the US Energy Information Administration (EIA).

Washington is considering easing restrictions on previously sanctioned tankers to allow legally traded oil to move more freely, a US official said. The discussions follow President Donald Trump’s temporary lifting of sanctions on Russian diesel fuel to curb surging global prices. However, the US Department of Energy said any relief involving the so-called shadow fleet would not facilitate Russian oil or oil product shipments, limiting the potential scope of the measure.

Renewed attacks on commercial shipping around the Strait of Hormuz have kept supply security in focus. A container ship and a dry bulk carrier sank near the waterway after separate projectile strikes, maritime officials said on Wednesday. Attacks have intensified over the past 10 days as Iran escalates its response to the US blockade of Iranian ports and tighter sanctions.