Oil prices retreat as US, allies seek to ensure safe passage through Hormuz

Oil prices fell on Friday after major European countries and Japan signaled joint efforts to ensure safe passage through the Strait of Hormuz, while the US announced measures to support supply.

In a fresh attempt to curb prices, US Treasury Secretary Scott Bessent said Washington could soon lift sanctions on Iranian oil cargoes already loaded on tankers, adding that further releases from the US Strategic Petroleum Reserve remain possible.

Brent crude futures fell $1.24, or 1.1%, to $107.41 per barrel by 01:48 GMT, while US WTI dropped $1.24, or 1.3%, to $94.90.

Brent is still set to gain more than 4% this week after Iranian strikes on Gulf energy facilities disrupted production.

In contrast, WTI is on track to fall nearly 4%, marking its first weekly decline in five weeks, and is trading at its widest discount to Brent in 11 years.

In a joint statement on March 19, the UK, France, Germany, Italy, the Netherlands, and Japan expressed readiness to help secure maritime transit through the strait, which handles around 20% of global oil and LNG flows.