Oil Prices Slip as Market Focus Shifts to Supply Flows

Oil prices have dropped following escalating attacks in the Gulf region, despite US President Donald Trump's threats to hit Iran 'very hard'.

Brent futures fell 96 cents, or 1.06%, to $89.78 a barrel, while US West Texas Intermediate (WTI) crude dropped 64 cents, or 0.76%, to $83.82 a barrel.

The decline comes after prices surged earlier in the week following Trump's statement, but market analysts believe that the gains were short-lived as supply flows through key chokepoints in the region remain steady.

Rystad Energy estimates that around 13 million barrels per day of oil from the Gulf is still reaching markets, despite Iran's closure of the Strait of Hormuz and a naval blockade imposed by the Houthis on Saudi Arabia.