Drones struck oilfields in Iraqi Kurdistan on Thursday, with officials pointing to Iran-backed militias as the likely source of attacks this week that have slashed the region's oil output by more than half.

Crude oil futures bounced back on surprisingly strong US economic data, falling US stockpiles, and drone attacks on oil infrastructure in Iraq's Kurdistan region.

The US on Wednesday condemned drone attacks on oil fields in the Iraqi Kurdish region. "The United States strongly condemns the drone attacks that have been targeting oil fields in the Iraqi Kurdistan Region since July 14,