Oil Prices Rebound but Tankers Keep Moving Amid Escalating Tensions

Oil prices have retreated as tankers continue to navigate through conflict zones in the Middle East. Despite escalating tensions and the spread of the U.S.-Iran war, oil futures declined on Thursday.

Brent futures fell by 79 cents or 0.9% to $87.30 a barrel, while U.S. West Texas Intermediate (WTI) crude slipped by 76 cents or 0.9% to $83.70 a barrel. This decline comes after Brent settled up 7.91% in the previous session and WTI up 6.56%, marking one of the sharpest spikes in the Iran war.

The highest number of commodity ships, thirty-nine, passed through the Bab el-Mandeb strait into the Red Sea on Tuesday since July 19. However, only a few tankers have been transiting through the Strait of Hormuz, which has been largely blocked since the start of the U.S.-Iran war in February.

Tony Sycamore, an IG market analyst, noted that while overall volumes are reduced, oil continues to leak out of the region through multiple channels. He also stated that 'the longer this situation persists, the more these alternative routes and methods will erode Iran's leverage over the Strait of Hormuz.'