Oil falls as traders weigh shipping risks and sanctions relief

Oil prices fell more than 1% on Thursday as traders weighed the risk of supply disruptions from attacks near the Strait of Hormuz against the possibility that the United States could ease sanctions on some oil-carrying vessels. Brent and U.S. West Texas Intermediate futures reversed gains from the previous session, when WTI had reached a three-week high. At 0925 Saudi time, Brent was down 1.7% at $104.30 a barrel and WTI had fallen 1.1% to $94.03. Prices varied across Thursday’s trading snapshots, but each showed both benchmarks lower. The declines came amid uncertainty over whether changes to sanctions or shipping conditions would materially affect oil flows. A U.S. official said the administration was considering allowing legal oil shipments on vessels that had previously been sanctioned. The discussions concern so-called shadow fleet ships that have transported petroleum products from countries including Russia, Iran and Venezuela. The proposal is aimed at reducing shipping costs, which have risen amid conflict-related disruption. No final policy decision was reported.