Oil Prices Fall as Saudi-Led Coalition Eases Shipping Concerns
Oil prices fell on Friday as concerns over potential disruptions to key Middle East shipping routes eased.
The geopolitical risk premium in crude markets decreased after Saudi Arabia announced a multinational maritime defense coalition to help safeguard critical shipping lanes.
The coalition, which includes 13 countries, aims to protect freedom of navigation and international trade through the Bab el-Mandeb Strait, the Red Sea, and the Gulf of Aden.
The Houthi group in Yemen denied reports that they planned to impose transit fees on commercial vessels passing through the Bab el-Mandeb Strait, saying it remains safe and open to international shipping.
The latest developments suggested that the risk of a wider disruption to regional oil shipments had eased, putting downward pressure on crude prices.