Global oil prices dropped sharply on Monday, easing from recent highs as some vessels resumed through the strategically vital Strait of Hormuz amid ongoing geopolitical tensions.
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Brent crude futures fell by $2.93, or 2.8%, to settle at $100.21 per barrel, while U.S. West Texas Intermediate (WTI) declined by $5.21, or 5.3%, to $93.50. The decline comes after weeks of volatility triggered by the conflict involving the United States, Israel and Iran, which disrupted oil shipments through the narrow waterway.
The International Energy Agency signaled it could release additional oil from strategic reserves if needed, following last week’s record coordinated release aimed at stabilizing markets. Analysts say the move has helped ease supply concerns, contributing to the latest price pullback.
Market sentiment also improved after reports that some tankers were successfully navigating the strait, raising hopes that supply routes may not be fully blocked. The waterway handles roughly one-fifth of global oil and liquefied natural gas shipments, making it one of the world’s most critical energy chokepoints.
Despite the decline, prices remain elevated, with both Brent and WTI benchmarks still significantly higher than levels seen before the conflict began in late February. Oil markets had surged nearly 40% amid fears of prolonged supply disruptions.
U.S. President Donald Trump has urged allies to help secure the strait, but several countries have shown reluctance to expand military involvement.
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Meanwhile, governments worldwide are scrambling to shield consumers from rising energy costs, while energy infrastructure in the Gulf continues to face security risks.
Analysts caution that oil markets will remain highly volatile, with future price movements largely dependent on the duration of the conflict and the stability of shipping through the Strait of Hormuz.