Strait of Hormuz Under Threat: Oil Reserves Released as Conflict Intensifies

Oil Prices Ease Slightly as Trump Urges Global Support to Protect Strait of Hormuz​

Global oil prices edged lower in early trading on Monday even as geopolitical tensions in West Asia continued to keep markets on edge. The decline followed sharp gains in the previous session, with traders closely watching developments around the Strait of Hormuz, a critical route for global energy shipments.

Oil Prices Slip After Recent Rally​

Brent crude futures fell 24 cents, or 0.23 percent, to $102.90 per barrel at 0049 GMT after settling $2.68 higher on Friday.

US West Texas Intermediate crude declined $1.07, or 1.08 percent, to $97.64 per barrel after gaining nearly $3 in the previous session.

Despite the modest pullback, both benchmarks have surged more than 40 percent this month, reaching their highest levels since 2022. The rally followed US and Israeli attacks on Iran that prompted Tehran to halt shipping through the Strait of Hormuz. The waterway handles roughly one fifth of global oil supply, making the disruption one of the largest ever for the energy market.

Trump Calls for International Support​

US President Donald Trump on Sunday called on other countries to help safeguard the Strait of Hormuz, describing it as a vital global energy corridor.

Trump said Washington is holding discussions with several nations about coordinating efforts to police the strategic waterway.

He also confirmed that the United States remains in contact with Iran but expressed doubt that Tehran is prepared to engage in serious negotiations aimed at ending the conflict.

Escalation Around Key Energy Infrastructure​

Over the weekend, tensions escalated further as Trump threatened additional strikes on Iran’s Kharg Island oil export hub after US forces targeted military installations.

Kharg Island is responsible for handling around 90 percent of Iran’s oil exports.

Following those strikes, Iranian drones hit a major oil terminal in Fujairah in the United Arab Emirates. Oil loading operations at Fujairah have since resumed, according to four sources, though it remains unclear whether activities have fully returned to normal.

Located outside the Strait of Hormuz, Fujairah serves as the export outlet for about one million barrels per day of the UAE’s Murban crude oil. That volume accounts for roughly one percent of global oil demand.

Strategic Oil Reserves Set to Enter Market​

In an effort to stabilize global energy markets, the International Energy Agency said more than 400 million barrels of oil reserves will soon begin entering the market.

The move represents a record release aimed at countering the sharp price increases triggered by the conflict in the Middle East.

Oil stocks from Asia and Oceania will be released immediately, while supplies from Europe and the Americas are expected to be made available toward the end of March.

Outlook for the Conflict and Energy Markets​

US Energy Secretary Chris Wright said on Sunday that the conflict between the United States and Iran could conclude within the next few weeks.

He added that oil supplies are expected to rebound afterward, which could lead to a decline in energy costs.

However, the situation in West Asia continues to be closely watched by global markets as uncertainty surrounding the conflict and the security of oil supply routes remains high.