Oil Prices Decline Amid Rising Tensions in the Persian Gulf

Oil prices have fallen despite escalating tensions in the Persian Gulf, as investors focus on supply flows through key regional shipping chokepoints.

The Brent crude futures price dropped by 96 cents to $89.78 a barrel, while US West Texas Intermediate crude fell by 64 cents to $83.82 a barrel.

On July 29, oil prices surged after US President Donald Trump threatened a 'very strong' strike against Iran following an Iranian missile attack on a US base in Jordan.

However, analysts say that actual oil supply flows and diplomatic efforts determine the duration of price spikes triggered by geopolitical headlines.