[International Oil Prices] Sharp Drop at Close... Bessent Says "Iranian Tankers Allowed to Transit Strait of Hormuz"

[The Financial News]

International oil prices fell on the 16th (local time).
The decline came as expectations grew that transit through the Strait of Hormuz may remain possible.
According to Consumer News and Business Channel (CNBC), May futures for Brent crude oil, the global benchmark, closed at $100.21 per barrel, down 2.84% from the previous session.
April futures for West Texas Intermediate crude oil (WTI), the U.S. benchmark, plunged 5.28% to finish at $9.50 per barrel. Both benchmarks had surged about 40% since the Islamic Republic of Iran war began on the 28th of last month, when the United States of America (U.S.) and Israel launched attacks on Iran.
The spike was driven by Iran’s de facto blockade of the Strait of Hormuz. The strait is a critical chokepoint through which about 20% of the world’s oil and natural gas supplies pass. At its narrowest, it is only 33 kilometers wide, making it relatively easy to seal off if a country chooses to do so. Iran also possesses ample means to close the strait, including drones, missiles, and naval mines.
The U.S. on this day wielded both carrots and sticks.
U.S. Treasury Secretary Scott Bessent said in an interview with CNBC that the United States is allowing Iranian oil tankers to transit the Strait of Hormuz.
“Iranian vessels are already passing through,” Bessent said, adding, “We have allowed that so that supplies can continue to reach the rest of the world.”
At the same time, the U.S. is also considering military options.
President Donald Trump over the weekend called on major countries to send troops. He proposed a joint effort to safeguard the Strait of Hormuz and noted that he is discussing the issue with some allies.
In an interview with NBC News on the 15th, Trump said the U.S. had bombed Kharg Island, Iran’s key oil hub, and “completely destroyed it,” warning that “we might bomb it several more times just for fun,” in a bid to ratchet up pressure on Iran.
dympna@fnnews.com Song Kyung-jae Reporter