LONDON – Global oil prices edged lower on Thursday after surrendering part of the previous session’s sharp gains, as crude shipments continued to leave the Middle East despite the escalating conflict between the United States and Iran.
Brent crude futures fell $1.29, or 1.42%, to $89.45 per barrel, while US West Texas Intermediate (WTI) crude declined 56 cents, or 0.66%, to $83.90 per barrel in early trading.
The pullback followed a strong rally on Wednesday, when Brent climbed 7.91% and WTI gained 6.56%, recovering from a nearly 5% decline recorded earlier in the week after a temporary lull in hostilities.
Preliminary shipping data showed that 39 commodity vessels passed through the Bab el-Mandeb Strait into the Red Sea on Tuesday, marking the highest daily traffic since July 19. However, only a limited number of tankers transited the Strait of Hormuz, reflecting continued disruptions along one of the world’s busiest energy corridors.
Market analysts said that although overall oil exports from the region remain below normal levels, shipments are continuing through alternative routes, reducing the immediate impact of restrictions in the Strait of Hormuz.
The Strait of Hormuz, which normally handles around one-fifth of the world’s oil and gas shipments, has remained largely disrupted since the outbreak of the US-Iran conflict in February. Diplomatic efforts to restore normal maritime traffic have so far failed, while Iran has reportedly rejected a proposal for joint regional management of the strategic waterway.
Meanwhile, regional tensions intensified after US and Saudi forces reportedly carried out strikes against paramilitary targets in Iraq in response to drone attacks on Saudi oil facilities. Iran also claimed to have targeted US military bases in Jordan and struck three oil tankers passing through the Strait of Hormuz via what it described as an unauthorised route.
Separately, Saudi Arabia is reportedly working to form a coalition aimed at protecting commercial shipping in the Red Sea from attacks by Yemen’s Houthi movement.
The Houthis have previously announced plans to expand their naval operations against shipping in both the Red Sea and the Bab el-Mandeb Strait, raising concerns over further disruptions to global energy supplies.
