Oil prices slide as supply worries and Strait of Hormuz attacks rattle global markets

Oil prices fell sharply as investors grappled with a deteriorating security situation in one of the world's most critical maritime corridors and uncertainty over the global supply outlook. Brent crude futures dropped $1.64, or 1.6%, to $104.42 a barrel, while U.S. West Texas Intermediate crude slipped 98 cents, or 1%, to $94.11, unwinding gains recorded in the previous session.

The retreat came as traders digested the International Energy Agency's latest monthly report alongside mounting concerns about attacks on commercial vessels near the Strait of Hormuz. Analysis of data from a UK maritime agency showed that 12 vessels were struck in a single week, the highest such figure on record, causing a measurable slowdown in oil exports through the strait.

Despite the dangers, shipping experts said vessels would continue transiting the strait, pointing to Singapore as an example. Although one Singapore-flagged ship was sunk following attacks on two container vessels, maritime authorities indicated that sailings through Hormuz would press on, reflecting how vital the waterway remains to global trade.

The turbulence in oil markets came even as Indian equities bucked the broader negative mood, with the Sensex climbing around 900 points. Analysts noted that the divergence underscored how regional factors were cushioning domestic markets from the full force of global commodity pressures.