LONDON: Global crude oil prices fell by more than $1 on Friday despite continued tensions between the United States and Iran, although both major benchmarks remain on track for monthly gains of around 20%.
Brent crude declined $1.03, or 1.2%, to $88 per barrel, while US West Texas Intermediate (WTI) fell $1.50, or 1.8%, to $82.09 per barrel.
Analysts said signs of improved oil flows through the Strait of Hormuz have eased some concerns over Middle East supply disruptions, putting downward pressure on prices. However, geopolitical risks remain a key factor in the market.
Saudi Arabia is also pushing to lead a multinational security coalition to protect energy shipping routes around Bab el-Mandeb, the Red Sea and the Gulf of Aden. According to Saudi officials, 14 countries, including Pakistan, Egypt, Türkiye, Sudan and Djibouti, support the initiative.
Despite continued tanker traffic through the Strait of Hormuz and the Red Sea, rising security concerns have increased shipping costs and insurance premiums, keeping a geopolitical risk premium embedded in oil prices.
