Brent futures were down 1.42% at $89.45 a barrel while US West Texas Intermediate (WTI) crude was down 0.66% at $83.9 a barrel.
As many as 39 commodity ships passed via the Bab el-Mandeb strait into the Red Sea on Tuesday, the highest since July 19. Only a few transited via the Strait of Hormuz, as per the preliminary data.
The Strait of Hormuz is the most important oil shipping route in the world via which around a fifth of global oil and gas flows passed previously. It has been largely blocked ever since the US-Iran war started in February.
A senior Iran official on Wednesday said the country has ruled out an Omani proposed for regional joint management of the strait.
Meanwhile, US-Saudi strikes in Iraq on Wednesday hit Iran-backed paramilitary forces. This is the first time Saudi publicly joined US air strikes, in retaliation for drone attacks on its oil targets launched from Iraq.
Iran also said it fired on US bases in Jordan and attacked three tankers transiting via the strait calling it an “unauthorized route”.
