Oil Prices Fall Over $1 as Supply Flows Rise Despite US Iran War

Global Oil Market – (Special Correspondent/Web Desk) – Oil prices slipped on Friday, yet the month is still closing out with a sharp gain of nearly twenty percent. The drop comes even though the US Iran war has kept traders on edge for weeks. More ships are now moving through key ocean routes, and that shift is giving the market some breathing room.

Brent crude dropped by a dollar and three cents, a fall of about 1.2%, bringing it down to 88 dollars a barrel. This was recorded early Friday morning. US West Texas Intermediate crude fell even more sharply, losing a dollar and fifty cents, or 1.8%, to settle near 82 dollars a barrel.

Even with Friday’s drop, both oil types are still set to close the month up by roughly a fifth. That’s a big jump in just thirty days.

Market analyst Daniel Hynes from ING said the small price dip happened because more oil tankers are now passing through the Strait of Hormuz. This eased worries that were building due to ongoing conflict in the Middle East.

The Strait of Hormuz carries about one-fifth of the world’s crude oil and gas shipments. It has stayed mostly blocked since the end of February, when the US and Israel launched military action against Iran. That event marked the real start of the current US Iran war standoff, and it continues to shape how traders view risk.

Saudi Arabia is now stepping up to guard other important routes. It wants to lead a group of nations to boost security around the Bab El-Mandeb Strait, the Red Sea, and the Gulf of Aden. These waterways are also vital for global energy trade.

According to Saudi defence officials, fourteen countries have joined this new coalition. The list includes Djibouti, Egypt, Pakistan, Sudan, and Turkiye. Together, they aim to protect ships and reduce further disruption.

Adding to the tension, Houthi forces in Yemen announced a naval blockade against Saudi Arabia last week. This move threatens to shut off the Red Sea path, which many exporters use as a backup when the Strait of Hormuz is unsafe.

Ships are still passing through both the Strait of Hormuz and the Red Sea for now. But the added danger has pushed up shipping costs and insurance fees. This has built a real risk premium into the price of oil.

Priyanka Sachdeva, an analyst at Phillip Nova, said that even though prices have cooled from recent highs, the overall direction still points upward. Traders remain cautious, watching each new development in the region closely.

For now, the market is stuck between two forces. On one side, better shipping flow is calming nerves. On the other, the unresolved US Iran war and new blockade threats keep a shadow over long-term price stability. Analysts say this back-and-forth pattern could continue unless there’s a clear breakthrough in diplomatic talks between Washington and Tehran.

Until that happens, expect oil prices to stay sensitive to every headline coming out of the Gulf region.