Saudi-Led Coalition Aims to Boost Red Sea Security Amid Oil Price Volatility

Oil prices fell on Thursday after a volatile session, settling down following proposed plans for a Saudi Arabia-led maritime coalition to boost defense cooperation in the Red Sea. The coalition aims to enhance security in strategic areas such as the Bab El-Mandeb Strait and the Gulf of Aden.

Saudi Arabia has secured support from 14 states, including Turkey, Pakistan, Egypt, Sudan, and Djibouti, for the proposed multinational defense alliance. Brent futures settled down USD 1.71 (1.88 percent) to USD 89.03 a barrel, while US West Texas Intermediate crude futures dropped by 87 cents (1.03 percent) to USD 83.59.

The Saudi defense ministry's plans come as Iran-aligned Houthi militants in Yemen declared a naval blockade on Saudi Arabia last week, threatening the Red Sea route for its oil exports. This move has added to concerns about global supply, with some analysts predicting that prices could rise further if disruptions continue.