Global oil prices saw a decline on Friday following hints from the US about potentially relaxing sanctions on Iranian crude. Brent crude futures dropped by 3.39% to $104.96 per barrel, while US WTI crude futures fell by 3.22% to $92.47. This move comes as efforts are made to ensure safe shipping through the Strait of Hormuz.
US Treasury Secretary Scott Bessent’s remarks about the possibility of easing restrictions on Iranian oil that is already at sea contributed to the drop in oil prices. Bessent mentioned that the US might consider “unsanctioning” about 140 million barrels of Iranian oil currently on the water in the near future. He also emphasized that the US is not aiming at Iran’s energy infrastructure and could adjust its approach based on market conditions.
Despite the recent decrease, crude prices have surged significantly due to geopolitical tensions. Brent crude prices surged by almost 40% from $77.74 on March 2 to $108.65 on March 19 as the conflict in West Asia entered its 21st day. The cooling of crude prices is attributed to signs of de-escalation in the Middle East and reduced concerns about disruptions to Iran’s energy infrastructure, which have lessened the risk premium in oil markets.
Equity markets showed a positive trend, with major indices trading over 1% higher. By 9:46 a.m., Sensex rose by nearly 1,000 points (1.34%), while Nifty gained around 300 points (1.38%). While global equities displayed mixed performance, Wall Street closed with the S&P 500 down by 0.27% and the Nasdaq declining by 0.28%.
