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Oil drops more than 3% as Middle East tensions push weekly gains

Brent fell to $97.10 a barrel but was still on track for an over 10% weekly rise, while WTI dropped to $89.05 and was set for nearly an 8% weekly increase.

Reported · Written up by our desk · Energy

Oil futures fell more than 3% on July 24 as disruptions in the Red Sea and rising U.S.-linked Iran tensions weighed on sentiment, according to LiveMint Markets citing Reuters. Brent futures were down $3.59, or 3.57%, to $97.10 a barrel at 1240 GMT, after settling above $100 in the prior session for the first time since May.

WTI futures were down $3.14, or 3.41%, to $89.05 a barrel, but both contracts remained on course for sizable weekly gains. LiveMint Markets said Brent is still set for an over 10% advance for the week and WTI for nearly an 8% rise as supply risks persist.

The report linked the price move to continued Middle East disruption concerns, including Red Sea outages and heightened risks around Iran. Rystad analyst Janiv Shah said disruptions in the Strait of Hormuz appear to be nearing peak levels seen last in March, and that Red Sea outages have driven prices higher as supply becomes squeezed again.

Vessel traffic data pointed to disruption without a total shutdown, LiveMint Markets added. Ship transits through the Strait of Hormuz were steady at three per day over the previous three days, and at the Bab el-Mandeb strait total vessel transits rose to 32 on July 23 from 26 the prior day, with two crossings recorded for July 24 so far.

Latest closeWTI crude $92.23 ▲6.2%|Brent $100.54 ▲6.9%

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