Benchmark oil for August delivery was down 49 cents at $87.17 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. In London, Brent crude for August delivery was down 55 cents at $100.13 per barrel on the ICE Futures exchange.
The contract jumped $3.91 to close at $87.66 in New York on Tuesday after Iran said it test-fired several ballistic missiles in war games exercises.
The acting commander of Iran’s Revolutionary Guard told state TV that the tests were a response to the refusal by Israel and the U.S. to rule out military strikes to stop Iran’s nuclear program.
A European Union ban on Iranian oil came into full effect July 1, and analysts expect the sanctions to cut the crude exports of Iran, OPEC’s second-largest producer.