Oil prices slip but stay above $110 as Hormuz tensions persist
Oil prices slip but stay above $110 as Hormuz tensions persist
Oil prices dipped after a surge as the U.S. Navy moved to reopen the Strait of Hormuz amid renewed Iranian attacks and a UAE oil port fire.
Oil prices edged lower on Tuesday after a sharp run-up, as the U.S. Navy began operations to reopen the Strait of Hormuz and ease potential supply disruptions.
Brent crude for July delivery slipped 0.6% to $113.76 a barrel, after rising as much as 5.8% in the previous session, while U.S. West Texas Intermediate (WTI) crude fell about 1.5% to $104.83 a barrel. The moves come even as tensions in the region remain elevated, with Iran launching attacks in the Gulf in response to the U.S. actions to secure the waterway that handles a sizable share of global energy flows.
Shipping could still be affected as several commercial vessels have reported exposure to the risk zone, and an important UAE oil port was reported to have caught fire after an Iranian strike. The U.S. push to reopen Hormuz marks the most significant escalation since a ceasefire declared four weeks ago.
Analysts note that while the immediate risk to supply has eased somewhat with the eye on reestablishing passage, the Strait of Hormuz remains a flashpoint that could fuel continued volatility in crude prices. President Donald Trump warned that Iran would face a strong response if it attacked U.S. ships protecting commercial traffic, underscoring the broader stakes for global energy markets. Officials emphasize that keeping the strait open is crucial for keeping flows stable, even as the regional conflict evolves.
