Oil Prices Retreat Amid Escalating Tensions in Middle East
Oil prices retreated on Thursday as crude continued to flow through alternative routes, despite escalating tensions in the Middle East. WTI crude slipped 0.54% to $84.00 a barrel, while Brent crude fell 0.85% to $89.97 a barrel.
The decline followed a sharp rebound on Wednesday, when Brent jumped 7.91% and WTI gained 6.56%. The gains erased losses from Tuesday, when both benchmarks dropped about 5% after hostilities briefly paused in the five-month conflict.
Preliminary data showed 39 commodity vessels entered the Red Sea through the Bab el-Mandeb Strait on Tuesday, the highest number recorded since July 19. However, traffic through the Strait of Hormuz remained limited.
Analyst Tony Sycamore noted that while overall volumes are reduced, oil continues to leak out of the region through multiple channels. He said additional workarounds are being explored, which will erode Iran's leverage over the Strait of Hormuz.