Baghdad: Oil prices declined slightly on Tuesday amid assessments of potential supply disruptions after US directives to ships transiting the Strait of Hormuz kept attention focused on tensions between Washington and Tehran. Brent crude futures fell 25 cents, or 0.4%, to $68.79 a barrel by 01:02 GMT. US West Texas Intermediate crude futures dropped 23 cents, or 0.4%, to $64.13.

According to National Iraqi News Agency, the directive from the US government advised ships to exercise caution when navigating the critical waterway, which is responsible for a significant portion of the world’s oil transportation. The Strait of Hormuz, a narrow passage connecting the Persian Gulf with the Gulf of Oman, has become a focal point amid escalating geopolitical tensions, leading to concerns over potential disruptions in oil supply.

The current situation has resulted in heightened awareness of the delicate balance of oil supply and demand, as market participants closely monitor developments between the US and Iran. Despite the slight decline in oil prices, traders remain vigilant over any further escalation that could impact the global oil supply chain.