Brent crude falls $1.26 as investors weigh geopolitical risks and potential supply increases amid proposed maritime security efforts.
Oil prices declined in volatile trading as markets reacted to Saudi Arabia’s proposal for a multinational maritime defense coalition in the Red Sea. Brent futures dropped $1.26, or 1.39%, to $89.48 a barrel after reaching a high of $93.31 earlier in the session.
The move follows heightened tensions after U.S. and Iranian military strikes, though concerns over potential supply disruptions were offset by expectations of increased output. West Texas Intermediate crude also fell, down 0.63% to $83.93 after peaking at $85.94.
Saudi Arabia’s defense ministry said 14 nations, including Egypt and Pakistan, backed the coalition to secure key shipping routes. Analysts noted that unresolved geopolitical risks could limit further price declines.