Shares of some oil-related companies in Asia fell sharply as crude prices declined on expectations that shipping through the Strait of Hormuz could partially resume.
Global oil prices, which had surged amid conflict in the Middle East, declined after reports that some vessels had resumed passing through the Strait of Hormuz and as international discussions continued on protecting oil tankers in the region.
On June 16, international oil prices fell about 3%, easing after a recent rally.
The global benchmark Brent crude futures dropped 2.8% to $100.21 per barrel, while West Texas Intermediate crude fell about 5% to $93.50 per barrel.
The decline followed reports that some vessels had successfully passed through the Strait of Hormuz, easing concerns about potential supply disruptions along the critical waterway that handles a significant portion of global oil shipments.
Donald Trump, president of the United States, said the country plans to form a naval coalition with allied nations to protect oil tankers passing through the strait and that participating countries would be announced soon.
Scott Bessent, the U.S. Treasury secretary, said in an interview with CNBC that Iranian tankers have also been passing through the strait: “Iranian oil tankers are already moving through the Strait of Hormuz, and the United States is allowing it in order to maintain global energy supply”.
Market participants say the signal that the key shipping route may partially reopen has eased concerns over supply disruptions that had pushed oil prices sharply higher following the outbreak of conflict.