Oil prices declined on 20 March following an announcement by the US and its allies regarding efforts to boost oil supply and secure maritime passage through the Strait of Hormuz.
This response comes as European countries and Japan offered to join these efforts to ensure the safe transit of vessels through the critical waterway.
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US Treasury Secretary Scott Bessent indicated potential measures aimed at controlling rising oil prices. These included lifting sanctions on Iranian oil tankers and considering further releases from the US Strategic Petroleum Reserve, reported Reuters.
By 07:30 GMT, Brent crude futures had dropped by $0.39, or 0.4%, reaching $108.26 a barrel (bbl). Meanwhile, US West Texas Intermediate (WTI) crude fell by $0.87, or 0.9%, to settle at $95.27/bbl.
Despite the day’s decline, Brent was set for a weekly gain of around 5% due to recent disruptions in Gulf state production following attacks by Iran on regional oil and gas facilities.
WTI faced a weekly decline of nearly 4%, marking its first downturn in five weeks and maintaining its largest discount to Brent in 11 years.
Furthermore, US President Donald Trump reportedly advised Israeli Prime Minister Benjamin Netanyahu against repeated attacks on Iranian energy infrastructure.
Meanwhile, a joint statement from Canada, France, Germany, Italy, Japan, the Netherlands and the UK condemned Iran’s attacks on commercial vessels and infrastructure in the Gulf.
These nations expressed concern over the escalating conflict and called on Iran to halt actions that threaten shipping through the Strait of Hormuz, reaffirming their commitment under UN Security Council Resolution 2817.
The statement emphasised the importance of freedom of navigation under international law, encompassing the UN Convention on the Law of the Sea.
It also highlighted the global repercussions of Iran’s actions, particularly the impact on vulnerable populations.
The countries welcomed the International Energy Agency’s decision for a coordinated release of petroleum reserves to stabilise energy markets.
General Dan Caine, Chairman of the US Joint Chiefs of Staff, was cited by ANI as saying that the US had destroyed 44 Iranian mine-laying vessels to counteract Iran’s attempts at mining the strait during the ongoing conflict in West Asia and the Gulf.
He added that A-10 Warthog aircraft have been deployed alongside AH-64 Apache helicopters to target Iranian vessels in the Strait of Hormuz.
Caine said: “The A-10 Warthog is now in the fight across the southern flank and is hunting and killing fast attack watercraft in the Straits of Hormuz. In addition, AH-64 Apaches have joined the fight on the southern flank, and they continue to work on the southern side.”
