Brent Crude Price Drops Amid Ongoing US-Iran Tensions and Yemen Conflict

The price of Brent crude has declined by $3.38 per barrel to trade at $88.28 per barrel, despite ongoing tensions between the US and Iran.

The crisis in the Middle East continues to escalate, with Yemen's Houthi militants planning to impose a toll fee on commercial vessels attempting to transit the Bab al-Mandeb Strait into the Red Sea.

This development has caused tanker traffic through the strait to slow down due to the risk of attack from the Houthis in Yemen.

Bab al-Mandeb is another vital oil chokepoint, like the Strait of Hormuz, carrying about 7% of global seaborne oil flows.