Global oil prices declined on Friday after the United States signalled a potential easing of sanctions on Iranian crude, amid efforts to stabilise supplies and ensure smooth shipping through the Strait of Hormuz.
Brent Crude futures fell as much as 3.39 per cent to an intra-day low of $104.96 per barrel, while West Texas Intermediate (WTI) crude declined 3.22 per cent to $92.47, also touching an intra-day low.
The drop in oil prices followed remarks by US Treasury Secretary Scott Bessent, who indicated that Washington may consider easing restrictions on Iranian oil already at sea in a bid to cool global prices.
In an interview with Fox Business Network, Bessent said the US could “unsanction” around 140 million barrels of Iranian oil currently on the water in the coming days. He added that the US has allowed Iranian crude exports to continue from the Gulf and may explore further flexibility depending on market conditions.
Bessent also clarified that the US is not targeting Iran’s energy infrastructure and retains multiple policy tools to influence global oil supply.
Meanwhile, a day after Israel attacked Iran’s main gas field in a sharp escalation of the U.S.-Israeli war on Iran, Prime Minister Benjamin Netanyahu told a press conference that Tehran no longer has the capacity to enrich uranium, a claim that has been contested by the U.N.’s nuclear watchdog.
Netanyahu sought during the 45-minute event to defend his country’s military operations even as its attacks on Iran’s South Pars field inspired tit-for-tat strikes on energy plants across the Gulf, sending energy prices spiralling.
NETANYAHU SAYS TRUMP ASKED HIM TO HALT FUTURE GAS ATTACKS
Asked by a reporter about the South Pars attack, Netanyahu said that Israel had acted alone. “President Trump asked us to hold off on future attacks,” he said.
Despite the recent decline, crude prices have surged significantly amid ongoing tensions in West Asia. As the conflict entered its 21st day, Brent crude has risen nearly 40 per cent – from $77.74 on March 2 to $108.65 on March 19.
Analysts said prices have moderated slightly on signs of possible de-escalation in the region. Reduced concerns over disruptions to Iran’s energy infrastructure have lowered the risk premium in oil markets. However, prices remain elevated, continuing to exert pressure on the Indian rupee.
Meanwhile, domestic equity markets rebounded, with benchmark indices trading over 1 per cent higher. The BSE Sensex rose nearly 1,000 points, or 1.34 per cent, by 9:46 a.m., while the Nifty 50 gained around 300 points, or 1.38 per cent.
Global equity markets showed a mixed trend, with S&P 500 and Nasdaq Composite both closing lower by 0.27 per cent and 0.28 per cent, respectively, in the previous session.
(With agency inputs)
