Saudi-led Coalition Aims to Secure Key Shipping Routes Amid Ongoing US-Iran Tensions

Oil prices extended their decline on Friday, falling to $88 per barrel as investors assessed Saudi Arabia's proposal to lead a multinational maritime defense coalition. The coalition aims to enhance security along key Red Sea shipping routes, including the Bab El-Mandeb Strait and the Gulf of Aden.

The 14 countries backing the proposed alliance include Turkey, Pakistan, Egypt, Sudan, and Djibouti. Brent crude prices traded at $88, down 1.16% or $1.03 per barrel, while US West Texas Intermediate dipped over 2% to $81.70 per barrel.

The decline in oil prices comes as tensions between the US and Iran remain high. The latest developments include a drone strike on two gas vessels at Egypt's Mediterranean port of Damietta, which has raised concerns about further conflict in the Middle East.