Commodities
Saudi-Led Coalition Eases Oil Price Pressure Amid Red Sea Tensions
Oil prices dropped on Friday as concerns over potential disruptions to key Middle East shipping routes eased. This reduced the geopolitical risk premium in crude markets, despite ongoing US-Iran tensions.
The international benchmark Brent crude futures for October traded at $85.26 per barrel, down 1.9% from the previous close of $86.88. US benchmark West Texas Intermediate (WTI) futures traded at $81.86 per barrel, down 2.1% from $83.59 in the previous session.
The dip in oil prices came after Saudi Arabia announced a multinational maritime defense coalition with 13 other countries to safeguard critical shipping lanes through the Bab el-Mandeb Strait, the Red Sea, and the Gulf of Aden.