Oil prices fell more than $1 on Friday, with Brent at $88 and WTI at $82.09, but both benchmarks remained on course for monthly gains of about 20%.
Brent futures dropped $1.03, or 1.2%, while US West Texas Intermediate declined $1.50, or 1.8%, by 2:15 a.m. GMT, according to Reuters market data.
ING analyst Daniel Hynes said signs of increased shipping through the Strait of Hormuz offset rising tensions in the Middle East. The waterway has faced severe disruption since the US-Israel war against Iran began on February 28.
The strait normally carries about one-fifth of global crude oil and liquefied natural gas shipments. Limited transit has supported oil prices and increased the market’s sensitivity to shipping data.
Saudi Arabia has moved to strengthen security along alternative energy routes. Its Defence Ministry said 14 countries supported a multinational maritime defence alliance covering the Bab el-Mandeb Strait, Red Sea and Gulf of Aden.
The participating countries include Djibouti, Egypt, Pakistan, Sudan and Türkiye.
Read: Global Oil Prices: The Iran War has Revealed China’s Enormous Power
Yemen’s Houthis declared a naval blockade against Saudi Arabia on July 20. The threat placed additional pressure on the Red Sea route used for Saudi oil exports.
Phillip Nova analyst Priyanka Sachdeva said continued tanker movements had eased immediate supply concerns. However, security risks have raised freight and insurance costs, maintaining a substantial geopolitical premium in crude prices.
