Oil prices swing up and down in volatile trade over Iran conflict

Separately, UBS raised its oil price forecasts by $10 a barrel on Thursday, projecting Brent crude at $105 a barrel and WTI crude at $97 in September.

Iran warned against further attacks and unveiled steps entrenching its control of the strait, which remains mostly closed. Before the war, the strait carried oil and liquefied natural gas shipments equal to about 20 per cent of global consumption.

Economic activity in the eurozone shrank at its sharpest rate in more than two-and-a-half years in May as a war-driven surge in living costs hammered demand for services across Europe and firms accelerated layoffs, surveys showed on Thursday.

Seven leading OPEC+ oil-producing countries will likely agree to a modest hike in July output when they meet on June 7, Reuters reported on Thursday, citing four sources. Typically, output decisions from the group would move markets, but that was not the case during Thursday's session, as supply disruptions linked to the Iran war continue to affect deliveries from several producers.

(Reporting by Siddharth Cavale in New York, Laila Kearney in New York, Stephanie Kelly in London, Sam Li in Beijing and Siyi Liu in Singapore; Editing by Gus Trompiz, Kirsten Donovan, David Gregorio, Rod Nickel)