Global oil prices fell sharply after briefly approaching $120 per barrel, as markets reacted to statements from U.S. President Donald Trump indicating that the United States is considering taking control of the Strait of Hormuz, one of the most important oil transit routes in the world.
Earlier trading saw oil markets surge amid fears that the ongoing conflict in the Middle East could disrupt energy shipments from the Persian Gulf. The international benchmark Brent Crude had climbed to nearly $119.50 per barrel, the highest level since the pandemic period, as tanker traffic slowed due to security concerns in the region.
However, prices later declined significantly after comments from President Trump suggesting that the United States might intervene to secure shipping routes through the Strait of Hormuz. According to reporting by CNBC, oil prices dropped during extended trading after the statement helped ease fears that global oil shipments could be severely disrupted.
Following the news, Brent crude fell to around $88.43 per barrel, while U.S. benchmark West Texas Intermediatedeclined to about $85.27 per barrel, reflecting a significant pullback from the earlier spike.
The Strait of Hormuz is considered the most critical chokepoint in global energy trade, with approximately 20 percent of the world’s oil supply passing through the narrow waterway each day. Any threat to shipping through the strait can rapidly impact energy markets and trigger volatility in global oil prices.
Market analysts note that the decline in prices reflects expectations that potential U.S. involvement could help stabilize maritime traffic and prevent a prolonged supply disruption. At the same time, energy ministers from the G7 are reportedly preparing to discuss possible policy responses, including the release of strategic oil reserves if necessary.
Despite the recent decline, analysts caution that global oil markets may remain volatile as geopolitical developments in the Middle East continue to evolve. Energy prices are expected to remain sensitive to any new developments affecting shipping routes or oil production in the region.
Source: CNBC – Global oil market coverage, March 2026.