Oil Prices Slip as U.S. Considers Releasing Sanctioned Iranian Supply to Stabilise Market
Story: written by Daniel March 20,2026
Global oil prices declined further on Friday after the United States signalled it may ease restrictions on Iranian crude stored offshore, a move aimed at calming markets following tensions triggered by Iran’s shutdown of the Strait of Hormuz.
U.S. Treasury Secretary Scott Bessent disclosed that Washington is weighing the release of roughly 140 million barrels of previously sanctioned Iranian oil currently held in tankers. According to him, injecting the supply into global markets could help moderate prices within the next two weeks.
Brent crude, the global benchmark, dropped by 1.62% to $106.89 per barrel, while U.S. West Texas Intermediate (WTI) fell 1.89% to $94.32 per barrel in early trading.
Meanwhile, Israeli Prime Minister Benjamin Netanyahu stated that Israel is supporting U.S. efforts to restore operations in the Strait of Hormuz. He also suggested that Iran’s military capabilities have been significantly weakened, expressing optimism that the conflict could end sooner than expected.
Analysts at Citigroup noted that the ongoing tensions involving Iran have sparked a sharp rally in oil and related commodities, prompting an upward revision of short-term price forecasts.
The bank now projects crude prices could rise to around $120 per barrel within one to three months, with a potential surge to $150 in a worst-case scenario if supply disruptions escalate further. However, its baseline outlook assumes a cooling of tensions within four to six weeks, which could see prices retreat to between $70 and $80 per barrel by year-end.
Citi also highlighted widening spreads between Brent and WTI crude, driven by higher shipping costs and strong demand along the U.S. Gulf Coast.
Separately, reports from The Wall Street Journal indicate that Saudi officials believe oil prices could soar beyond $180 per barrel if disruptions linked to the Iran conflict persist into late April.
Overall, the potential reintroduction of Iranian crude into the market is being closely watched as a key factor that could ease immediate supply concerns and prevent further price spikes.
