Global Oil Prices Plunge More Than 5 Percent, Here's Why
Global oil prices plunged more than 5 percent on Wednesday (25/3/2026), as hopes of achieving a ceasefire in the Middle East grow, which is seen to ease global energy supply disruptions.
Citing Reuters, Brent crude oil fell $6.21 or 5.9 percent to $98.28 per barrel at 00:58 GMT. During trading, Brent oil briefly hit a low of $97.57 per barrel.
Meanwhile, US West Texas Intermediate (WTI) crude oil dropped $4.67 or 5.1 percent to $87.68 per barrel, after falling to $86.72 per barrel.
Previously, on Tuesday (24/3/2026), both oil price benchmarks had risen nearly 5 percent before correcting in volatile trading.
Nissan Securities Investment chief strategist Hiroyuki Kikukawa said expectations for a ceasefire are increasing, prompting profit-taking in the market.
However, he assessed that the market direction remains overshadowed by uncertainty, particularly regarding the chances of success in the ongoing negotiations.
He added that oil prices could surge again if the conflict continues, especially if Iranian attacks expand to energy facilities in surrounding countries or pressure to close the Strait of Hormuz intensifies.
US President Donald Trump stated on Tuesday that negotiations to end the war with Iran are showing progress.
Sources familiar with the matter also confirmed that Washington has sent a conflict resolution proposal to Tehran.
Israeli media Channel 2 reported that the US is proposing a one-month ceasefire to discuss the plan.
The ongoing conflict has nearly halted oil and liquefied natural gas shipments through the Strait of Hormuz, a vital route that typically carries about one-fifth of global crude oil and gas supplies.
The International Energy Agency even described this situation as the largest oil supply disruption ever.
Amid this, the Pakistani Prime Minister expressed willingness to host talks between the US and Iran. However, on Monday, Iran denied engaging in negotiations with Washington.
Nevertheless, attacks between the US, Israel, and Iran continue. Sources indicate that Washington is also preparing additional troop deployments to the region.
To offset distribution disruptions through the Strait of Hormuz, Saudi Arabia’s oil exports from the Yanbu port in the Red Sea increased to nearly 4 million barrels per day last week, a sharp rise compared to before the conflict erupted, based on shipping data.