"Oil Prices Fluctuate Amid Red Sea Strife and Economic Concerns"
Despite initial concerns over potential supply disruptions due to heightened Red Sea tensions and an Iranian warship's presence, oil prices fell on Tuesday. West Texas Intermediate crude and March Brent crude both saw declines after earlier gains. The situation escalated when U.S. forces engaged Houthi rebels following an attack on a cargo ship, and shipping giant Maersk paused transit through the Red Sea. However, the risk premium from regional conflicts has not sustained higher oil prices, with factors such as a global economic slowdown, increased U.S. production, and OPEC uncertainties leading to a subdued demand outlook and contributing to oil's first annual loss since 2020.