Oil prices drop over 3% as Middle East supply fears ease

Sharp declines in crude benchmarks

Brent crude and West Texas Intermediate both declined by over 3% on Thursday, with international benchmark Brent falling 3.5% to around $102.10 per barrel and US benchmark WTI dropping 3.1% to $99.31, according to trading data at 1215GMT. The losses extended declines from the previous session, when Brent had fallen 2.7% and WTI 3.2% as market participants reacted to shifting supply dynamics.

Easing supply concerns

Prices came under pressure as developments offering alternative export routes and the prospect of restoring disrupted infrastructure reduced fears of an acute supply shortage in the region. Market participants have welcomed the emergence of export alternatives, though uncertainty surrounding Middle Eastern supplies continues to keep trading volatile despite the temporary relief in immediate shortage concerns.

Persistent geopolitical risks

The Strait of Hormuz — a critical chokepoint for global energy shipments — remains a key source of risk for crude oil and liquefied natural gas flows traversing the waterway. Attacks on Russian refinery infrastructure are adding pressure to refined product markets as the conflict continues to influence global supply chains beyond immediate Middle East dynamics.