Oil prices fell on Friday but kept on track for a monthly rise of about a fifth, as more supplies flowed through crucial maritime chokepoints, despite a lack of major breakthroughs in talks between the United States and Iran.
Brent futures fell $1.44, or 1.6%, to $87.59 a barrel by 0658 GMT, while US West Texas Intermediate (WTI) crude slipped $1.59, or 1.9%, to $82 a barrel. On a monthly basis, both benchmarks were set to rise about 20%.
Crude oil is edging lower as rising tension Middle East tension is being offset by signs of increased flows in the Strait of Hormuz, said Daniel Hynes, a senior commodity analyst at ANZ.
The strait, which usually carries about a fifth of global shipments of crude oil and liquefied natural gas, has been a focal point for oil markets as it has been largely blockaded since the February 28 launch of the US-Israel war on Iran.
Saudi Arabia is seeking to lead a coalition to boost defense cooperation in the Bab el-Mandeb Strait, the Red Sea and the Gulf of Aden, all chokepoints for energy supplies.
The Saudi Defense Ministry said 14 nations, including Djibouti, Egypt, Pakistan, Sudan and Türkiye, were in support of the multinational maritime defense coalition.
Although tanker traffic has continued through the Strait of Hormuz and the Red Sea, higher security risks have boosted freight costs and insurance premiums to embed a significant geopolitical risk premium in oil prices, said Priyanka Sachdeva, analyst at Phillip Nova.
"While prices eased from recent highs, the broader trend remains constructive," Sachdeva said.
