Oil prices slip as U.S.-Iran tensions and smaller-than-expected crude draw
Oil prices actually slipped on Wednesday, despite rising tensions between the US and Iran in the Middle East.
Brent crude dropped $1.11 to $83.62 per barrel, and West Texas Intermediate fell 81 cents to $78.53.
The main reason? US crude stockpiles didn't fall as much as expected last week, which took some pressure off prices.
Shipping risks could spike oil prices
The standoff has people worried about major oil shipping lanes like the Strait of Hormuz, where about a fifth of the world's oil and liquefied natural gas passed prior to the war's outbreak, and now even the Bab el-Mandeb gateway is on analysts' radar.
After recent military strikes and retaliations in the region, experts warn that if these routes are disrupted, oil prices could shoot up fast (Goldman Sachs thinks Brent could top $110 per barrel).
For now, though, markets are staying fairly steady despite all the drama.