Saudi Defense Coalition Plan Sinks Oil Prices Amid Red Sea Shipping Concerns
Oil prices took a hit on July 30 as Saudi Arabia's plan for a multinational maritime defense coalition to protect shipping and energy transport routes in the Red Sea gained traction. The coalition, which includes countries such as Pakistan, Turkey, Egypt, and Jordan, aims to safeguard freedom of navigation in the region.
The news sent oil prices lower, with September Brent crude futures dropping 1.4% to $86.88 a barrel on ICE Futures Europe, while West Texas Intermediate for September settlement fell 1.0% to $83.59 a barrel on the New York Mercantile Exchange.
Oil had surged earlier in the session after the US and Iran struck each other's military facilities, but it later erased those gains and turned lower as the coalition news took center stage.