Middle East Tensions Weigh on Oil Prices as Tanker Routes Emerge

Oil prices have taken a hit as tensions in the Middle East continue to escalate. Despite Brent futures settling up 7.91% in the previous session, it fell $1.29, or 1.42%, to $89.45 a barrel on Thursday.

The drop comes as oil tankers continue to make their way out of the region through multiple channels, with thirty-nine commodity ships passing through the Bab el-Mandeb strait into the Red Sea on Tuesday, the highest number since July 19.

According to IG market analyst Tony Sycamore, 'while overall volumes are reduced, oil continues to leak out of the region through multiple channels, and additional workarounds are being explored.'