Oil Prices Ease as Iran Hostilities De-escalate, Shipping Risks Persist

Oil prices eased on Wednesday as hopes of de-escalation in Iran war hostilities reignited, potentially restoring shipping traffic in the Strait of Hormuz and oil flows in the Middle East.

The Brent crude futures price dropped by 2 US cents to $79.34 a barrel, while U.S. West Texas Intermediate futures fell by 35 US cents to $75.42.

Despite this decline, concerns about shipping risks persisted due to a maritime embargo declared by Yemen's Iran-aligned Houthi rebels on Saudi ports and vessels in the Red Sea.

The Strait of Hormuz is a critical waterway, with approximately 20% of global oil and liquefied natural gas passing through it before the war began.