Oil Prices Dip as Tanker Traffic Through Red Sea Eases Supply Concerns

Oil prices declined on Thursday as tanker traffic through the Bab el-Mandeb Strait showed no signs of grinding to a halt, easing immediate concerns over global supply. The Brent crude price fell by 1 percent to $89.46 per barrel, while US benchmark West Texas Intermediate (WTI) dropped to $83.54 per barrel.

The decline came despite renewed military exchanges between the United States and Iran, as well as fresh attacks on energy infrastructure in the Middle East. However, analysts pointed out that oil cargoes were still finding their way through alternative routes, which was helping to ease supply concerns.

According to reports, 39 commodity carriers exited the Bab el-Mandeb Strait on Tuesday, suggesting that shipping through one of the world's key oil chokepoints has not been severely impacted. However, tanker movements through the Strait of Hormuz remain significantly below normal levels.