Oil Prices Pull Back from Record Heights Amid Shipping and Diplomatic Gains

Crude oil prices dipped nearly 1% to below $84 a barrel on Thursday, following a sharp increase of 6.6% in the previous session.

The decline was attributed to several factors, including improving shipping activity through the Strait of Hormuz and continued diplomatic efforts to ease regional tensions.

According to Kpler, 14 commodity vessels transited the Strait of Hormuz in both directions on Wednesday, a significant increase from single-digit daily crossings recorded last week.

Qatar also dispatched its first LNG cargo through the waterway, while Saudi Arabia proposed a naval coalition to safeguard key trade routes.

However, geopolitical risks remained elevated after US forces struck dozens of Iranian military targets in an effort to weaken Tehran's ability to threaten regional shipping and US allies.