Brent crude futures slipped 35 cents, or 0.4%, to $88.87 a barrel, retreating from a one-month high as markets digested the ongoing tensions between the United States and Iran.
US West Texas Intermediate (WTI) crude for September delivery held steady at $82.47 per barrel, reflecting a cautious stance among traders following two sessions of gains.
Earlier this week, Brent crude had touched $87 a barrel before stepping back, as investors weighed the latest escalation between the US and Iran against broader supply fundamentals.
The pullback comes as Yemen's Houthi rebels threatened to disrupt shipping routes, adding a new layer of supply risk to the already volatile Middle East landscape.
While the immediate threat has not yet materialized into widespread disruptions, the mere possibility has kept a risk premium embedded in energy prices.
This development follows a period of significant volatility in oil markets.
Earlier this week, Brent crude had touched $87 a barrel before stepping back, as investors weighed the latest escalation between the US and Iran against broader supply fundamentals.