Oil Prices Dip Despite Rising Tensions and Naval Blockade Threats

Oil prices fell on Friday but are still set to rise about a fifth for the month. Brent futures dropped $1.03, or 1.2%, to $88 a barrel, while US West Texas Intermediate crude slipped $1.50, or 1.8%, to $82.09 a barrel.

The decline was offset by increased flows through key maritime chokepoints, despite rising tension in the Middle East due to the US-Iran war. The Strait of Hormuz, which carries about a fifth of global shipments, has seen tanker traffic continue uninterrupted.

Saudi Arabia is leading a coalition to boost defense cooperation in several straits and waterways critical for energy supplies. Meanwhile, Iran-aligned Houthi militants in Yemen declared a naval blockade last week on Saudi Arabia's oil exports via the Red Sea route.