Crude gave back some of the week's gains after Brent and WTI each touched their highest settlement levels in roughly a month on Wednesday. The pullback reflects profit-taking rather than any easing of risk, given both benchmarks were up over 1% intraday before fading. Traders are now pricing in the possibility that Hormuz and the Bab el-Mandeb route could both be disrupted simultaneously, a scenario analysts flag as a major amplifier of supply chain stress, tanker constraints and insurance costs. Iran's release of a US citizen offered a modest offsetting signal that a path away from full-scale war may still exist.---Oil cools slightly from a monthly high as Iran threatens to shut a second export chokepoint.Summary:Brent crude fell around $0.75, or roughly 0.9%, to about $84 a barrel, while WTI dropped near $0.80, or about 1%, to around $79, according to Reuters.Both contracts had been up more than 1% at session highs before fading into the close, per Reuters.Brent and WTI settled at their highest levels since mid-June on Wednesday, according to Reuters.Iran has asked the Houthis to be ready to close the Red Sea oil route if the US strikes Iranian power infrastructure, according to sources cited by Reuters.Bab el-Mandeb transited roughly 7.4 million barrels per day in June, around 7% of global oil output, up sharply from about 4.2 million bpd a year earlier, per Kpler data.The US struck Iranian coastal defences and missile sites after reimposing a naval blockade, with Tehran describing the conflict as an "existential war," according to Reuters.Vessel transits through the Strait of Hormuz fell to roughly seven on Wednesday from around 13 the day before, per Reuters.Iraqi crude loadings more than doubled to about 1.2 million bpd in the first half of July as exports accelerated, according to Kpler data and a source familiar with the flows.Overnight US strikes targeted Iranian military capabilities, with Iran responding against Kuwait and Jordan, and Trump signalling further strikes next week, per wire reports.Oil prices eased on Thursday but held close to their highest levels in about a month, as the escalating conflict between the United States and Iran kept traders on edge over the fate of two of the world's most critical energy chokepoints.Brent crude slipped roughly $0.75, or about 0.9%, to trade near $84 a barrel, while US West Texas Intermediate fell close to $0.80, or around 1%, to about $79. Both benchmarks had been up more than 1% earlier in the session before losing ground into the close. The retreat followed a strong run higher, with both contracts settling at their best levels since mid-June just a day earlier.The pullback came despite, rather than because of, any cooling in tensions. Iran has reportedly instructed Yemen's Houthi movement to prepare to shut the Red Sea export corridor should the US follow through on threats to strike Iranian power plants and bridges, a step President Trump reiterated this week. Analysts warned that with the Strait of Hormuz already effectively closed, a simultaneous disruption at Bab el-Mandeb would represent a serious escalation, given the corridor now carries close to 7% of global oil output, nearly double the volume it handled a year ago.Wednesday saw the US strike Iranian coastal defences and missile sites after reimposing a naval blockade on Iranian ports, prompting Tehran to describe itself as engaged in an "existential war" with Washington and to threaten further disruption to regional energy flows. The ceasefire reached in June has effectively collapsed, and shipping through Hormuz, which once carried around a fifth of global daily oil and LNG trade, has thinned sharply, with only about seven vessels transiting on Wednesday compared with roughly 13 the previous day.Overnight, the US carried out fresh strikes on Iranian military capabilities, and Iran retaliated with attacks on Kuwait and Jordan. Trump indicated operations would expand further next week, and reports suggested Washington may be leaning toward broader military action following intensive briefing sessions. Prices briefly spiked on unconfirmed reports of explosions in Dubai, though these were later denied by local media officials, while Qatar pushed back on separate reports that it had agreed to join military action against Iran.Offering a rare note of de-escalation, Iran's release of a detained US citizen was seen as a potential signal that both sides may still be seeking an offramp from full-scale war. Meanwhile, on the supply side, Iraqi crude loadings more than doubled in the first half of July to roughly 1.2 million barrels a day, as exports accelerated following months of constrained shipping activity.With the region's two main export arteries now both under direct threat, traders are likely to keep a substantial geopolitical risk premium embedded in prices until there is clearer evidence that either side is stepping back from further confrontation. This article was written by Eamonn Sheridan at investinglive.com.