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Oil Recoils From $120 Spike as White House Vows Relief, Eyes Tanker Escorts

Hopes of a shorter campaign cooled prices, with shipping through Hormuz still constrained.

Overview

  • Brent retreated to roughly $90–$92 per barrel after peaking near $120, following President Trump’s remarks that the Iran war could end relatively soon.
  • The White House said the price surge is temporary and signaled potential U.S. Navy escorts for commercial tankers to help keep the Strait of Hormuz open.
  • Tanker movements through Hormuz remain a fraction of normal levels, with one analysis putting traffic near 20% of typical volumes after recent attacks and insurance withdrawals.
  • G7 officials weighed coordinated strategic reserve releases as Asian governments rolled out conservation steps, price caps, remote work, and other measures to manage shortages.
  • Output cuts by major Gulf producers and strikes on regional energy facilities, including a shutdown at the UAE’s Ruwais refinery, continue to constrain supply and unsettle markets.