Brent Crude Plunges Below $90 as Middle East Tensions Persist

Brent crude oil prices plummeted below $90 per barrel after tensions between the US and Iran escalated, disrupting oil flows in the Middle East.

The sudden drop suggests that traders are pricing in prolonged supply risks from the region, rather than a quick diplomatic fix.

The conflict between Washington and Tehran appears to be at an impasse, with the US insisting on freedom of navigation through the Strait of Hormuz and Iran seeking to preserve control over transits through a toll system.

Tensions in the Red Sea remained high as Houthi forces in Yemen attacked Saudi oil facilities, while Saudi-backed Yemeni forces carried out strikes on Houthi targets. As a result, traffic through Bab-el-Mandeb, the southern entry to the Red Sea, declined significantly.