Oil Prices Dip Below $90 Amid Continued Shipping Disruptions

Oil prices dropped on Thursday after giving up some of Wednesday's sharp gains. Brent crude futures fell $1.29, or 1.42%, to $89.45 a barrel. U.S. West Texas Intermediate (WTI) crude slipped 56 cents, or 0.66%, to $83.90 a barrel.

The decline comes after the previous session saw a 7.91% surge in Brent and a 6.56% climb in WTI. This was one of the biggest jumps during the Iran war.

Despite tensions escalating, oil tankers continued to move out of the Middle East. Preliminary shipping data showed that 39 commodity vessels passed through the Bab el-Mandeb Strait into the Red Sea on Tuesday, the highest count since July 19.

However, tanker traffic through the Strait of Hormuz remains far below normal, keeping supply risks in place. Goldman Sachs estimates that Brent could climb to $120 a barrel if shipping disruptions continue.