Oil Prices Slide Amid Ongoing Middle East Tensions

Oil prices slipped lower on Thursday despite renewed attacks across the Middle East. Crude oil was trading at $89.46 per barrel, down about 1% from Wednesday's close, while Brent crude was trading at $83.54 per barrel.

The price drop comes as tensions between the US and Iran continue to escalate. The U.S. Central Command announced renewed strikes on targets in Iran on Wednesday, saying 'The strikes are a powerful response to yesterday's attempted Iranian attacks on U.S. forces based in the Middle East.'

However, traders are focusing on reports that oil tankers are still passing through the Bab el-Mandeb Strait, despite the increased tensions. IG Group analyst Tony Sycamore said 'While overall volumes are reduced, oil continues to leak out of the region through multiple channels, and additional workarounds are being explored.'

ING commodity strategists noted that this risk was especially pronounced in middle distillates and that crack spreads are still breaking records.