Brent Crude Falls 1.66% as Hormuz Sinking Raises Supply Concerns

Oil prices slipped Thursday as traders weighed the sinking of a Singapore-registered ship in the Strait of Hormuz and warnings that diesel-market constraints could last into 2027.

Brent crude futures for December delivery fell 1.66% to $104.31 a barrel. U.S. West Texas Intermediate futures for November delivery dropped 1.09% to $94.05. Brent is the international benchmark, while West Texas Intermediate tracks the U.S. market.

The vessel’s sinking added to concerns about a prolonged conflict in the Middle East. Diesel-market constraints could persist well into 2027. Further attacks on Saudi Arabia could disrupt a recovery in oil supply.

Saudi crude continued reaching international buyers through alternative routes. Emergency stock releases by IEA members are providing a buffer for the market.