Benghazi – Oil prices recorded a slight decline on Tuesday. Markets are anticipating potential supply disruptions. This follows continued tension between the United States and Iran. Recent US directives were issued to vessels passing through the Strait of Hormuz.
Brent crude futures fell by about 25 cents. This is equivalent to 0.4 percent. Prices reached $68.79 per barrel. This occurred by 01:02 GMT. US West Texas Intermediate crude dropped by 23 cents. Or 0.4 percent. It registered $64.13 per barrel.
This decline follows gains exceeding one percent. Prices achieved these gains during Monday’s session. It followed a warning from the US Maritime Administration. The US Department of Transportation’s Maritime Administration warned US-flagged commercial vessels. They were advised to avoid Iranian territorial waters as much as possible. It also instructed them to refuse any boarding attempts by Iranian forces.
Approximately one-fifth of global oil consumption passes through the Strait of Hormuz. Any escalation in the region raises significant concerns. This concerns the stability of energy supplies to markets.
Iran relies on the strait to export most of its crude oil. Major OPEC countries also depend on it. These countries include Saudi Arabia, the UAE, Kuwait, and Iraq. This is especially true for exporting oil to Asian markets.