Oil Price Today (March 13): Crude oil drops below $100 despite Iran-Israel war entering 14th day. Here’s why

Following a massive surge of nearly 10% on Thursday, crude oil prices slipped on Friday morning after the U.S. issued a 30-day license allowing countries to purchase Russian oil and petroleum cargoes that are currently stranded at sea, easing immediate supply worries.

U.S. Treasury Secretary Scott Bessent said the temporary license was intended to help stabilise global energy markets that have been unsettled by the war in Iran.

Crude oil price on March 13

Brent futures fell 71 cents, or 0.71%, to $99.75 a barrel at 0123 GMT, while U.S. West Texas Intermediate (WTI) crude declined 88 cents, or 0.92%, to $94.85.

The decision on Russian oil came a day after the U.S. Energy Department announced that the United States would release 172 million barrels of crude from the Strategic Petroleum Reserve to cool surging oil prices following the conflict in Iran. The move is part of a coordinated effort with the International Energy Agency (IEA), which has agreed to release a record 400 million barrels from strategic stockpiles, including the U.S. share.

Are worries over?

Tensions in the region remain high. Iran’s new supreme leader, Mojtaba Khamenei, said the country would continue the fight and keep the Strait of Hormuz closed as leverage against the United States and Israel.

Security risks have also increased. Iraqi security officials said two fuel tankers in Iraqi waters were struck by explosive-laden Iranian boats on Thursday. An Iraqi official told state media that the country’s oil ports have completely halted operations, Reuters reported.

Iran warned that global oil prices could climb to $200 per barrel after its forces struck merchant ships earlier this week.

U.S. President Donald Trump, who has not committed to a timeline for military operations, said that he was not yet ready to call an end to the war.

Uncertainty over how quickly the additional oil will reach the market has also weighed on sentiment. While the IEA’s move represents an unprecedented intervention, the agency did not specify the pace at which individual countries will release their reserves or how the oil will be distributed.

Concerns over a prolonged conflict are also overshadowing the IEA’s move. Iran has told regional intermediaries that any ceasefire would require the US to guarantee that neither it nor Israel will carry out future attacks on the country, recognise Iran’s rights, and fund reparations for the damage caused during the war. However, Bloomberg reported that Washington is unlikely to accept these conditions.

At the same time, steps are being considered to limit the disruption. Scott Bessent told Sky News that the U.S. Navy, possibly alongside an international coalition, could escort vessels through the Strait of Hormuz when it becomes militarily feasible.

Saudi Arabia is reportedly paying a premium to reroute tankers through the Red Sea, using its East-West pipeline to move oil to global markets. Meanwhile, Iran is allowing one or two tankers a day to pass through the strait, mainly shipments headed to China, helping maintain some cash flow while keeping China on its side.

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