Oil Prices Decline Amid Easing Middle East Supply Fears

Oil prices declined on Thursday, extending recent losses as concerns over supply disruptions in the Middle East began to ease. A strong dollar also put pressure on crude after the Federal Reserve hiked interest rates by 25 basis points to 4.0%. Chairman Kevin Warsh warned that inflation remained too high, indicating further rate hikes in the coming months.

The price of Brent fell slightly to $105.83 a barrel by 21:36 ET (01:36 GMT), while West Texas Intermediate dropped 0.2% to $102.21 a barrel. The decline was attributed to reports that Saudi Arabia had begun moving more oil through Oman to avoid disruptions in the Red Sea due to Houthi aggression.

Riyadh offered more loadings of crude to Asian refiners through ship-to-ship transfers off Oman's Sohar port, keeping Middle Eastern supplies flowing despite heightened military tensions. Separately, Reuters reported that the U.S. and Yemen's Iran-backed Houthis held dialogue over the weekend, where the latter reiterated their commitment to a 2025 ceasefire.