Oil slid over 3% as partial Hormuz transit and fresh IEA release signals blunt geopolitical premium
As select vessels navigated the restricted Strait of Hormuz and authorities teased further emergency market interventions.
Brent NYMEX
Oil prices retreated Monday, shedding a portion of their war-driven risk premium as select vessels navigated the restricted Strait of Hormuz and authorities teased further emergency market interventions.
Brent fell $2.93 (2.8%) to settle at $100.21 a barrel. US WTI led the downside, plunging $5.21 (5.3%) to $93.50, pressured by impending April contract expirations and robust domestic output bolstered by Venezuelan imports. Despite the selloff, both benchmarks remain up nearly 40% since the joint US-Israeli offensive began on February 28.
The rapid repricing followed reports that Tehran permitted select Indian and Chinese vessels to transit the chokepoint. This narrow diplomatic breakthrough occurred as EU foreign policy chief Kaja Kallas confirmed European allies have "no appetite" for a multilateral escort coalition, effectively rebuffing US President Donald Trump’s appeals. Concurrently, the IEA signaled readiness to deploy additional strategic stockpiles, while US Treasury Secretary Scott Bessent acknowledged a tactical tolerance of these limited maritime flows.
Despite intraday relief, physical fundamentals remain highly volatile. With President Trump threatening kinetic strikes on Iran's Kharg Island—which handles 90% of its exports—and mixed operational reports from ADNOC's recently attacked Fujairah terminal, structural supply risks are actively escalating as the military campaign enters its third week.
Written by: Aiman Haikal