Global Oil Prices Plummet, but Strait of Hormuz Remains Vulnerable
KOMPAS.com - Global oil prices fell sharply during trading on Monday (23/3/2026), in line with easing market concerns after US President Donald Trump announced a delay in attacks on Iran.
The decision was made following talks between the US and Iran to open opportunities for ending the conflict in the Middle East region.
Quoting Reuters on Tuesday (24/3/2026), shortly after the announcement, global oil prices were immediately pressured. Brent crude futures were recorded to have fallen more than 13 per cent, or about $17, to $96 per barrel at 11.08 GMT.
Meanwhile, US West Texas Intermediate (WTI) crude also weakened. WTI prices fell around 13.5 per cent or $13 to the lowest level of $85.28 per barrel.
In his statement, Trump mentioned positive developments in communication between the two countries.
“I am pleased to report that the United States and Iran have had very good and productive conversations over the past two days regarding a full resolution of the conflict in the Middle East,” Trump wrote in a post on Truth Social.
Trump confirmed that the talks would continue throughout this week. He said he had instructed the US Department of Defense to postpone all military attacks on Iran’s power plants and energy infrastructure for five days.
However, there is still no clarity on whether the Iranian side has approved the statement delivered by Trump. This latest stance also marks a significant change, considering that two days earlier Trump had threatened to bombard Iran’s energy facilities if Tehran did not reopen the Strait of Hormuz.
Further, Chevron CEO Mike Wirth said that the impact of the current oil supply disruptions has not yet been fully accommodated in futures contract prices.
“There is a real physical impact from the closure of the Strait of Hormuz that is now spreading around the world, but it is not yet fully reflected in oil futures contract prices,” Wirth said at the CERAWeek energy conference held by S&P Global, as reported by CNBC.