BEIJING, July 30 — Oil prices eased on Thursday as tankers continued to navigate through conflict-affected zones in the Middle East amid escalating tensions and the widening U.S.-Iran war.

Brent crude futures fell by 79 cents, or 0.9%, to $87.30 a barrel, while West Texas Intermediate (WTI) crude slipped 76 cents, or 0.9%, to $83.70 a barrel. This followed a sharp spike in prices the previous session, where Brent rose 7.91% and WTI increased 6.56%, reversing a 5% drop earlier in the week after a temporary pause in hostilities.

Shipping data showed that 39 commodity ships passed through the Bab el-Mandeb strait into the Red Sea on Tuesday, marking the highest number since July 19. In contrast, only a few vessels transited the Strait of Hormuz.

IG market analyst Tony Sycamore noted, "While overall volumes are reduced, oil continues to leak out of the region through multiple channels, and additional workarounds are being explored. The longer this situation persists, the more these alternative routes and methods will erode Iran's leverage over the Strait of Hormuz."

Iran has rejected an Omani proposal for regional joint management of the Strait of Hormuz, according to a senior Iranian official. Meanwhile, sources reported that Saudi Arabia is seeking to form a coalition to protect Red Sea shipping from attacks by the Iran-backed Houthi group in Yemen.

On July 20, the Iran-backed group in Yemen declared it would impose a naval blockade on Saudi Arabia in the Red Sea, expanding attacks on tankers and opening a new front in the Iran War. This move aims to disrupt shipping in the Bab el-Mandeb strait, the second most important oil shipping channel.

Sources