Oil Prices Slip Amid US-Iran Tensions Despite Strait of Hormuz Risks

Global oil prices dipped on Friday, sparking concerns that a two-week price rally may be coming to an end. Despite escalating tensions between the US and Iran, traders are taking profits after the recent surge.

The Brent crude contract fell by 25 cents, or 0.3%, to $89.45 per barrel, while U.S. West Texas Intermediate (WTI) crude declined by 22 cents, or 0.3%, to $83.31 per barrel.

This price drop marks a significant decline since the beginning of the week, with Brent falling by 5.3% and WTI declining by 4.3%.

The Strait of Hormuz, a critical maritime chokepoint, remains mined, posing a continued risk to oil supplies. Approximately 20% of global oil is supplied through this route.