Oil Prices React To Promises To Unblock The Strait Of Hormuz
- 20.03.2026, 12:58
Quotes of "black gold" are falling.
Oil prices fell in the morning on March 20. Quotes of "black gold" are falling as leading European countries and Japan proposed to join efforts to ensure the safety of navigation through the Strait of Hormuz, and the United States announced plans to increase oil supplies, reports Reuters.
According to the investing portal, as of 9:34 Kiev time, the cost of Brent crude oil fell by 77 cents - to 107.88 dollars per barrel. U.S. WTI crude fell by $1.54 to $94.01 per barrel.
In a joint statement on March 19, Britain, France, Germany, Italy, the Netherlands and Japan expressed readiness to join relevant efforts to ensure safe passage through the Strait of Hormuz.
For his part, U.S. Treasury Secretary Scott Bessent said Washington may soon lift sanctions on Iranian oil stuck on tankers, and also noted that further release of part of the U.S. Strategic Petroleum Reserve is possible. He said such measures would help curb soaring oil prices.
The Bloomberg publication notes that the cheapening of oil was also helped by attempts by U.S. and Israeli leaders to reassure investors who were alarmed by damage to energy facilities in the Persian Gulf. President Donald Trump told reporters he "won't be sending troops anywhere" when asked about the possibility of deploying U.S. ground forces, while Israeli Prime Minister Binyamin Netanyahu said Jerusalem would refrain from further attacks on Iranian energy facilities.
Senior market analyst at Phillip Nova Priyanka Sachdeva emphasizes that markets will remain sensitive to the situation in the Strait of Hormuz. She adds that even if an agreement on safe passage of ships through the Strait of Hormuz can be reached, "full restoration of logistics could take a very long time."
"Until then, any direct blow to export infrastructure or tanker routes could cause prices to spike, while prolonged diplomatic efforts could contain price increases and accelerate the disappearance of the 'war premium,'" the analyst concluded.