Oil prices slide 3% as some ships transit Strait of Hormuz

Published Tue, Mar 17, 2026 · 06:06 AM

[NEW YORK] Oil prices slid about 3 per cent on Monday (Mar 16) after some vessels sailed through the critical Strait of Hormuz, even as US allies rebuffed President Donald Trump’s call for help in unblocking the strait, and as the head of the IEA suggested more reserves could be released to stem the rising costs caused by the Iran war.

Brent futures fell US$2.93, or 2.8 per cent, to settle at US$100.21 a barrel, while US West Texas Intermediate (WTI) crude fell US$5.21, or 5.3 per cent, to settle at US$93.50.

Analysts said US prices fell by more than Brent due to several reasons, including near-record US crude output bolstered by Venezuela imports and the upcoming release of oil from the US Strategic Petroleum Reserve. In addition, some traders were selling the April WTI front-month contract before its coming expiration on the New York Mercantile Exchange on Mar 20.

On Friday, Brent closed at its highest since August 2022 and WTI at its highest since July 2022, putting both benchmarks up almost 40 per cent since the US and Israel attacked Iran on Feb 28.

Trump repeated his call for nations to help unblock the Strait of Hormuz, and complained that other countries were not enthusiastic about providing aid.

European Union foreign ministers currently have “no appetite” to expand an EU naval mission in the Middle East to the strait, EU foreign policy chief Kaja Kallas said on Monday.

The Strait of Hormuz is a critical shipping waterway for a fifth of global oil and liquefied natural gas (LNG) supplies. Iran, which has allowed some Indian vessels to sail through the Strait of Hormuz, asked India to release three tankers seized in February as part of talks seeking the safe passage of Indian-flagged or India-bound vessels through the strait, three sources with knowledge of the matter told Reuters.

“The (oil) complex is selling off … on reports that some oil tankers are proceeding through the Strait of Hormuz and as Trump appeals for help in escorting tankers through the strait,” analysts at energy advisory firm Ritterbusch and Associates said in a note. Earlier Monday, US Treasury Secretary Scott Bessent said the United States is “fine” with some Iranian, Indian and Chinese ships going through the Strait of Hormuz for now, adding that any action to mitigate higher prices would depend on how long the war lasts.

Soaring energy costs

Governments worldwide are trying to shield consumers from soaring energy costs as the disruption to global oil and gas supplies caused by the war ripples through economies.

Member countries of the International Energy Agency (IEA) could release more oil into the market from strategic stockpiles “as and if needed” after they agreed to the largest-ever release of 400 million barrels last week, executive director Fatih Birol said on Monday. Israel said it has detailed plans for at least three more weeks of war as its military pounded sites across Iran overnight.

US Energy Secretary Chris Wright said on Sunday he expected an end to the war within “the next few weeks,” with oil supplies rebounding and energy costs falling afterwards. Over the weekend, Trump threatened further strikes on Iran’s Kharg Island, which handles about 90 per cent of the country’s exports, after hitting military targets there that spurred further retaliation from Teheran.

The US is in contact with Iran, Trump said.

Abu Dhabi state oil giant ADNOC has suspended crude loading operations at the United Arab Emirates Port of Fujairah, a source familiar with the situation told Reuters on Monday, after a drone attack triggered fires at the key export terminal.

However, two other sources said some loading at Fujairah restarted. Two of the three single-point moorings, where tankers connect to load, were operational, one source said. REUTERS