Global crude markets witnessed a brief pullback after the United States introduced a temporary policy measure allowing countries to purchase Russian oil cargoes currently stranded at sea. The decision comes amid severe supply disruptions triggered by geopolitical tensions in the Middle East and rising concerns about the security of critical shipping routes.

Brent crude futures declined by 71 cents, or 0.71%, to $99.75 per barrel in early Asian trading, while U.S. West Texas Intermediate crude fell 88 cents, or 0.92%, to $94.85 per barrel. The price drop followed a week of intense volatility that had pushed crude benchmarks to their highest levels since August 2022, reflecting escalating geopolitical risks.

The U.S. Treasury’s decision allows countries to purchase Russian oil and petroleum products that have already been loaded onto vessels but remain stranded at sea. The license will remain valid for 30 days, creating a temporary window for the market to absorb these supplies. Officials indicated the move is designed to prevent a sudden tightening of global crude availability while diplomatic and military tensions continue to evolve.

Treasury Secretary Scott Bessent said the measure is intended to stabilize global energy markets that have been destabilized by the war involving Iran and the growing risk to critical maritime routes. According to analysts cited in market commentary, the policy offers immediate supply relief but does not resolve the structural threat posed by disruptions to the Strait of Hormuz.

The policy decision followed another major intervention by the United States aimed at cooling energy prices. The U.S. Energy Department announced plans to release 172 million barrels of crude oil from the Strategic Petroleum Reserve.

This release forms part of a coordinated global effort involving the International Energy Agency, which has agreed to release approximately 400 million barrels from member-country strategic reserves. Details regarding coordinated reserve releases can be referenced through https://www.iea.org.

Despite these efforts, the broader geopolitical environment remains highly unstable. Iran’s leadership has reiterated that the Strait of Hormuz will remain closed as a strategic lever against the United States and Israel. The waterway is one of the most critical chokepoints in global energy trade, with roughly a fifth of the world’s oil shipments typically passing through it.

Recent incidents have reinforced market anxiety. Security officials reported that two fuel tankers in Iraqi waters were struck by explosive-laden Iranian boats, while Iraqi authorities said operations at the country’s oil ports had been halted. At the same time, Oman moved vessels away from its Mina Al Fahal export terminal as a precautionary measure due to the heightened risk environment.

Regional oil logistics are also being reshaped in response to the threat. Saudi Arabia is reportedly diverting shipments through its East-West pipeline to the Red Sea in order to bypass the Strait of Hormuz. Meanwhile, Iran has allowed limited tanker movements primarily shipments destined for China suggesting a selective approach to maintaining export revenue while sustaining geopolitical leverage.