Global oil prices drop up to 3% as US indicates easing of Iran sanctions

Global oil prices declined sharply on Friday after the US signalled a potential easing of sanctions on Iranian crude, in a move aimed at stabilising supplies and ensuring smoother shipping through the Strait of Hormuz.According to information,Brent crude futures fell as much as 3.39 per cent to an intra-day low of $104.96 per barrel, while West Texas Intermediate (WTI) crude declined 3.22 per cent to $92.47, also hitting an intra-day low.
The decline followed remarks by US Treasury Secretary Scott Bessent, who indicated that Washington may consider easing restrictions on Iranian oil already at sea to cool global prices. He stated that the US could “unsanction” nearly 140 million barrels of Iranian crude currently on the water in the coming days, adding that exports from the Gulf have been allowed to continue and further flexibility may be explored depending on market conditions. He also clarified that the US is not targeting Iran’s energy infrastructure and retains multiple policy tools to influence global supply.
The development comes amid heightened geopolitical tensions in West Asia. A day after Israel targeted Iran’s key gas infrastructure, Prime Minister Benjamin Netanyahu claimed that Tehran no longer has the capacity to enrich uranium, a statement contested by the United Nations’ nuclear watchdog. He also said that Israel acted independently and noted that US President Donald Trump had asked to hold off on further gas-related strikes.
Despite Friday’s decline, crude prices remain elevated after a sharp rally driven by the ongoing conflict. Brent has surged nearly 40 per cent over the past few weeks, reflecting persistent supply concerns and geopolitical risk premiums.Analysts noted that prices have moderated slightly on expectations of de-escalation, as reduced concerns over disruptions to Iran’s energy infrastructure have eased market anxiety. However, elevated oil prices continue to exert pressure on currencies such as the Indian rupee.Meanwhile, domestic equity markets showed resilience, with the BSE Sensex rising nearly 1,000 points and the Nifty 50 gaining around 300 points in early trade. Globally, markets remained mixed, with the S&P 500 and Nasdaq Composite ending the previous session slightly lower.