West Texas Intermediate (WTI) crude oil dropped below the $78 mark as the market digested a pause in attacks on shipping lanes in the Red Sea by Yemen’s Houthi forces. The retreat underscores lingering concerns about global demand and geopolitical stability despite the temporary halt in disruptions.
The Houthis’ suspension of assaults on critical maritime routes eased immediate fears of supply chain disruptions. However, broader market pressures, including faltering demand from major economies and a stronger U.S. dollar, contributed to oil’s downward momentum. Investors remain cautious, weighing the fragility of the ceasefire against ongoing geopolitical risks in the Middle East.
With WTI falling nearly 2%, traders are bracing for further volatility as global economic uncertainties and OPEC’s production strategies continue to shape market dynamics.
