Oil Prices Ease By 1% As Tankers Continue Passing Through Bab el-Mandeb Strait
· Free Press Journal
Crude oil prices edged lower on Thursday as markets assessed the impact of renewed US-Iran military tensions against reports that oil shipments through key maritime routes were continuing.
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Brent crude was trading around $89.46 per barrel, while West Texas Intermediate (WTI) stood near $83.54 per barrel, with both benchmarks down nearly 1% from Wednesday’s close.
The decline came despite fresh military developments in the Middle East. The US Central Command announced renewed strikes on Iranian targets, describing the action as a response to attempted attacks on American forces stationed in the region.
Iran had earlier launched missile attacks targeting US troops in Jordan, while US and Saudi forces carried out strikes against Iran-aligned groups in Iraq. These groups were reportedly preparing attacks on Saudi energy infrastructure.
L&T Secures Major Kuwait Oil Company Order, To Strengthen Crude Export InfrastructureAdditional concerns emerged after reports of a drone attack on a US-owned tanker at Egypt’s Damietta port, an important LNG terminal. Egypt confirmed the incident, with later reports suggesting that two LNG vessels were involved.
However, oil traders remained focused on shipping activity and supply flows rather than the latest military escalations. Market participants noted that tankers were still moving through the Bab el-Mandeb Strait, a crucial shipping route connecting the Red Sea with global markets.
According to a report by oilprice.com citing ship-tracking data, around 39 commodity carriers exited the Bab el-Mandeb Strait on Tuesday, despite reduced traffic through the Strait of Hormuz.
Crude Oil Prices Down 1.7% As US-Iran Diplomacy Hopes Ease Market ConcernsAnalysts said continued movement of vessels through alternative routes has helped ease immediate concerns over a severe supply shock.
However, risks remain elevated as attacks on Saudi energy infrastructure could create longer-term challenges for global oil supplies.
Despite the recent decline, oil markets remain highly sensitive to developments in the Middle East, with traders closely monitoring military activity, shipping movements and any signs of further escalation between regional powers.