Oil prices fall as Red Sea risks ease
- Oil prices declined as markets assessed proposed Red Sea maritime security plans and ongoing Middle East tensions.
- Brent crude fell 1.39% to $89.48 per barrel, while WTI dropped 0.63% to $83.93.
- Investors continued monitoring Strait of Hormuz risks and diplomatic discussions involving Iran and Oman.
Oil prices declined on Thursday as investors weighed a proposed Saudi Arabia-led maritime defence coalition for the Red Sea against continued military tensions between the United States and Iran.
Brent crude futures fell $1.26, or 1.39%, to $89.48 per barrel after reaching an intraday high of $93.31, while U.S. West Texas Intermediate crude futures declined 53 cents, or 0.63%, to $83.93.
“There is this sense that there is a lot of supply waiting to hit market once all of this is resolved, and that is a weight against any kind of dramatic price rise,” said John Kilduff, partner at Again Capital.
Saudi Arabia proposed a multinational maritime defence coalition involving countries including Turkey, Pakistan, Egypt, Sudan and Djibouti to strengthen security cooperation around the Bab El-Mandeb Strait, the Red Sea and the Gulf of Aden.
Oil markets remained focused on developments around the Strait of Hormuz, a key shipping route that typically handles about one-fifth of global oil and liquefied natural gas flows.
Talks between Iran and Oman continued over management of the Strait of Hormuz, with analysts noting that progress toward reopening the waterway could reduce market concerns.
The U.S. military also reported strikes against Islamic Revolutionary Guard Corps targets in Iran after Tehran launched ballistic missile attacks against U.S. forces in the Middle East, adding further uncertainty to global energy markets.
