Oil prices fall 15 per cent after US Navy escorts tanker through Hormuz Strait

GLOBAL oil prices dropped sharply on Tuesday after the United States Navy escorted a commercial oil tanker through the Strait of Hormuz, easing fears of prolonged disruptions to global energy supplies amid the ongoing conflict involving the United States, Israel and Iran.

Brent crude fell about 15 percent to around $84 per barrel, reversing much of Monday’s surge when prices briefly climbed as high as $119–$120 per barrel due to concerns that the war could disrupt shipments through the critical oil transit route.

U.S. crude oil prices also declined in tandem, triggering a broad sell-off in global energy markets and lifting investor sentiment across financial markets.

The Strait of Hormuz, located between Iran and Oman, is one of the world’s most strategic maritime chokepoints, carrying about 20 per cent of global oil shipments and a significant portion of liquefied natural gas exports.

Markets reacted strongly after reports emerged that the U.S. Navy had successfully escorted an oil tanker through the strait, marking the first confirmed convoy operation since the escalation of hostilities in the region.

U.S. Energy Secretary Chris Wright announced the development on social media, stating that the operation was aimed at ensuring that oil supplies continue to reach global markets.

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“The U.S. Navy successfully escorted an oil tanker through the Strait of Hormuz to ensure oil remains flowing to global markets,” Wright wrote, adding that President Donald Trump is working to maintain stability in global energy markets during the ongoing military operations against Iran.

Shortly after the announcement, the social media post was deleted, and U.S. officials have yet to clarify the status of future naval escorts.

Despite the uncertainty, the news triggered an immediate reaction in global markets, with investors interpreting the move as the beginning of a broader effort by Washington to reopen the vital shipping corridor.

Shipping activity through the Strait of Hormuz had collapsed in recent weeks after Iran’s Islamic Revolutionary Guard Corps declared the passage closed and threatened to attack vessels attempting to transit the waterway.

Several commercial ships were reportedly struck by missiles and drones during the escalation, prompting major global shipping companies to suspend operations through the corridor and reroute vessels around the Cape of Good Hope, significantly increasing shipping times and costs.

According to maritime intelligence data, traffic through the strait fell by as much as 95 per cent in early March, leaving an estimated 16 million barrels of oil per day stranded behind the chokepoint.