Oil Prices Plunge 5% as Hopes for Middle East Peace Suppress Prices
Jakarta, CNBC Indonesia — Global oil prices came under pressure again during Wednesday morning’s trading (25/3/2026), with a decline approaching 5% as market concerns over supply disruptions from the Middle East subsided.
According to Refinitiv data as of 10.25 WIB, Brent crude oil was at US$99.11 per barrel, down from the previous close of US$104.49.
Meanwhile, West Texas Intermediate (WTI) crude was recorded at US$88.48 per barrel, weakening from US$92.35. This correction signals a reversal in direction following a sharp surge that occurred at the start of the week.
Looking further back, price movements over the past few days have shown high volatility. Brent once reached US$112.19 on 20 March, before gradually falling to the US$90 range. WTI followed a similar pattern, moving from US$98.32 to below US$90 in a short time.
Citing Reuters, this decline was triggered by rising expectations of a ceasefire between the United States and Iran. The US government is reported to have sent a 15-point peace proposal to end the conflict that has long disrupted global energy distribution.
Analyst at Nissan Securities Investment, Hiroyuki Kikukawa, stated that the market is beginning to engage in profit-taking after prices had surged. Expectations of the conflict easing are prompting market participants to reduce positions, although the direction of negotiations remains uncertain.
During the ongoing conflict, global oil and gas distribution has been disrupted, particularly in the Strait of Hormuz, a vital route that carries about one-fifth of the world’s energy supply. This disruption has even been described as one of the largest by the International Energy Agency (IEA).
Amid this situation, Saudi Arabia has increased exports through the Yanbu port in the Red Sea to nearly 4 million barrels per day. This move serves as a temporary buffer to maintain global supply flows outside the Hormuz route.
Another signal easing the market came from Iran, which stated that non-hostile ships can still pass through the Strait of Hormuz with certain coordination. This statement has slightly reduced market concerns over the potential closure of this strategic route.
Nevertheless, risks have not entirely dissipated. Military tensions in the region persist, and any new escalation, especially targeting energy facilities, could potentially drive prices back up.