Oil prices edged lower on Tuesday as markets assessed the likelihood of supply disruptions, after U.S. guidance to vessels transiting the Strait of Hormuz kept attention focused on tensions between Washington and Tehran.
Brent crude futures fell by 25 cents, or 0.4%, to $68.79 a barrel by 01:02 GMT. U.S. West Texas Intermediate crude declined by 23 cents, or 0.4%, to $64.13 a barrel.
The move followed a rise of more than 1% on Monday, after the U.S. Maritime Administration advised U.S.-flagged commercial vessels to stay as far as possible from Iranian territorial waters and to verbally refuse any request by Iranian forces to board their ships.
About one-fifth of the world’s oil consumption passes through the Strait of Hormuz, between Oman and Iran, making any escalation in the region a significant risk to global crude supplies.
Iran, along with OPEC members Saudi Arabia, the United Arab Emirates, Kuwait, and Iraq, exports most of its crude oil through the strait, primarily to Asia.
— Reuters
