Oil Prices Rebound but Then Fall as Tankers Continue to Transit Middle East Conflict Zones

Oil prices retreated on Thursday as tankers continued to transit through Middle East conflict zones despite escalating tensions between the US and Iran.

Brent crude futures fell $1.29, or 1.42%, to $89.45 a barrel by 01:10 GMT, while U.S. West Texas Intermediate (WTI) crude declined 56 cents, or 0.66%, to $83.90 a barrel.

The reversal in oil prices comes after Brent settled 7.91% higher on Wednesday, and WTI gained 6.56%, marking one of the strongest rallies during the Iran war.

Preliminary data showed that 39 commodity-carrying vessels passed through the Bab al-Mandab Strait into the Red Sea on Tuesday, the highest number since July 19.