Oil prices fell on Monday as some vessels resumed transit through the Strait of Hormuz, easing immediate supply fears, although the waterway remains under heavy security risk amid the ongoing conflict.
Brent crude settled at $100.21 per barrel, down $2.93, or 2.8%, while U.S. West Texas Intermediate (WTI) crude settled at $93.50, down $5.21, or 5.3%. U.S. prices declined more sharply than Brent due to strong domestic production, expected releases from the Strategic Petroleum Reserve, and positioning ahead of the April WTI contract expiration.
Crude prices retreated after reports that some tankers were successfully moving through the Strait of Hormuz, which normally carries about 20% of global oil and LNG supplies. Iran has allowed limited passage for certain vessels, including some Indian-flagged ships, as negotiations continue over safe transit.
Despite the easing in prices, geopolitical risks remain elevated. The United States has urged allies to assist with efforts to secure the waterway, though European officials indicated there is currently little appetite to expand naval operations in the region.
Governments are also looking for ways to offset rising energy costs. The International Energy Agency (IEA) signaled that additional releases from global strategic stockpiles remain possible after last week’s record 400 million barrel coordinated release.
Meanwhile, the conflict continues to threaten regional infrastructure. Drone attacks recently disrupted loading operations at a major export terminal in the United Arab Emirates, though some operations have since partially resumed. Analysts warn that continued attacks or damage to energy infrastructure could quickly tighten global supply again.