New York: Oil prices declined on Thursday as the United States and its allies stepped up efforts to stabilise global supply and ease tensions around the Strait of Hormuz, one of the world’s most important oil transit routes.
Brent crude fell to around 108 dollars per barrel, while US West Texas Intermediate dropped below 96 dollars. The fall came as markets reacted to signs that major countries are working together to prevent further disruption in oil shipments.
The Strait of Hormuz carries nearly one fifth of the world’s oil supply. Recent tensions in the region, including attacks on energy infrastructure and risks to shipping, had pushed prices sharply higher in previous days. However, fresh moves to secure the route have helped calm fears, at least for now.
The United States is considering releasing more oil from its emergency reserves to increase supply. At the same time, discussions are underway about allowing additional oil to enter the market, including shipments that were previously restricted. There are also signs that US domestic production could rise in response to the crisis.
Several countries in Europe and Asia have expressed support for efforts to protect shipping lanes and ensure the steady flow of energy. Japan is reviewing its energy security plans, while countries like India are seeking alternative supply routes to reduce dependence on the affected region.
Despite the drop in prices, the situation remains uncertain. Oil exports from the Middle East have fallen sharply in recent days due to security concerns and shipping disruptions. Analysts warn that any further escalation could quickly push prices higher again.
Military tensions in the region continue to be a major concern. The United States has increased its presence to safeguard commercial shipping, while diplomatic efforts are ongoing to prevent further damage to energy infrastructure.
Experts say the current price movement reflects expectations of future action rather than an actual recovery in supply. The global oil market remains highly sensitive to developments in the region.
For now, the fall in prices offers some relief to consumers and businesses, but the overall outlook remains fragile as the crisis continues to unfold.