Oil prices declined significantly on Monday, with Brent crude falling nearly 3% to $100 per barrel and West Texas Intermediate (WTI) dropping almost 5% to $94 per barrel. The US natural gas benchmark, Henry Hub, also fell more than 3%. This drop occurred amid US efforts to reassure markets about the flow of oil through the critical Strait of Hormuz, despite ongoing threats from Iran.

US Statements on Strait of Hormuz Access

US Treasury Secretary Scott Bessent stated that the US was permitting Iranian oil tankers to transit the Strait of Hormuz to ensure markets remain "well supplied" during the conflict. He reported that tankers supplying India had transited the strait and that some Chinese ships were exiting the Persian Gulf. India is also awaiting Iranian confirmation for 22 other ships to sail through.

Conflicting Messages from US Leadership

US President Donald Trump claimed that "numerous countries" were en route to help safeguard the strait, which has been effectively blocked since the US-Iran war began on 28 February. However, he also criticized nations that rebuffed his calls for help, asserting the US does not need additional protection and that the situation is in "very good shape." Trump further stated the US had destroyed 30 of Iran's mine-laying ships in the strait.

Market and Industry Impact

The International Energy Agency's executive director emphasized that reopening the Strait of Hormuz is the "single most important thing" for oil market stabilization. Meanwhile, US oil and gas company stocks have generally risen since the conflict began. Specific indices show gains over recent days, months, and year-to-date, despite minor slips on Monday. According to a report, US oil executives have warned administration officials that the war's impact on the strait will continue to disrupt global energy markets.