Oil Prices Slide as Red Sea Tensions Persist Amid Global Crude Supply Disruptions
Oil prices dropped on Friday after rising sharply in the previous session due to ongoing tensions in the Red Sea and disruptions to global crude supplies.
The West Texas Intermediate (WTI) crude price for September delivery fell by $2.88, or 3.12%, to around $91 per barrel, while Brent crude retreated to around $97 per barrel after hitting a two-month peak of $102.
The decline came as oil tankers continued to transit through the Red Sea despite threats from Iran-backed Houthi militants, with some vessels reportedly turning off their location transponders to navigate the area. This move had previously caused prices to spike when Houthis launched missile and drone strikes against two Saudi Arabian oil tankers.
The dispute between Saudi Arabia and Houthi forces has led to warnings against vessels docking at Saudi ports, endangering Saudi crude exports from Yanbu, a key Red Sea hub.