Oil prices drop as Trump urges global action to secure Strait of Hormuz

2026-03-16 - 06:56

Oil prices fell on Monday, erasing earlier gains, after U.S. President Donald Trump urged other countries to help secure the Strait of Hormuz, a critical route for global oil and gas shipments. Brent crude futures dropped 24 cents, or 0.23%, to $102.90 a barrel by 00:49 GMT, after having closed $2.68 higher on Friday. Meanwhile, U.S. West Texas Intermediate (WTI) crude fell $1.07, or 1.08%, to $97.64 a barrel, following a gain of about $3 in the previous session. Both benchmarks have surged more than 40% this month, reaching their highest levels since 2022, after Tehran halted shipping through the Strait of Hormuz in response to U.S. and Israeli attacks on Iran. This disruption has cut off roughly one-fifth of the world’s oil supply, marking the largest interruption in decades. Trump stated that Washington is seeking assistance from other nations to monitor the corridor and confirmed that the U.S. remains in contact with Iran, though he expressed doubts that Tehran is ready for serious negotiations to end the conflict, reports Al-Rai daily. He also threatened further attacks on Kharg Island, Iran’s major oil export hub, after recent strikes on military targets. About 90% of Iran’s oil exports pass through Kharg Island. The International Energy Agency announced that more than 400 million barrels of oil reserves will soon be released into the market, a record drawdown aimed at stabilizing prices amid the Middle East crisis. SEB analyst Eric Myerson noted: “As the conflict enters its third week, the lack of a clear end in sight has heightened global market concerns about an uncontrollable spiral of escalation.” However, U.S. Energy Secretary Chris Wright said he expects the conflict between the U.S. and Iran to conclude within the next few weeks, with oil supplies returning to normal and energy prices easing thereafter.