Oil slips as Trump presses other countries to help secure Strait of Hormuz
By Florence Tan
SINGAPORE, March 16 (Reuters) - Oil prices slipped on Monday, paring early gains after U.S. President Donald Trump called on other countries to help safeguard the Strait of Hormuz, a vital artery for global oil and gas shipments.
Brent crude futures LCOc1 fell 24 cents, or 0.23%, to $102.90 a barrel by 0049 GMT after settling $2.68 higher on Friday.
U.S. West Texas Intermediate crude CLc1 slipped $1.07, or 1.08%, to $97.64 a barrel, after gaining nearly $3 in the previous session.
Both contracts have surged more than 40% this month to their highest levels since 2022 after the U.S.-Israeli attacks on Iran prompted Tehran to halt shipping through the Strait of Hormuz - choking off a fifth of global oil supply in the biggest disruption ever.
President Trump said on Sunday he is demanding that other countries help protect the critical energy gateway, adding that Washington is in talks with several nations about policing it. lane.
The U.S. is also in contact with Iran , Trump said, but expressed doubt that Tehran is prepared for serious negotiations to end the conflict.
STRIKES ON KHARG ISLAND, FUJAIRAH
Over the weekend, Trump threatened further strikes on Iran's Kharg Island oil export hub after hitting military targets over the weekend, drawing a defiant response of more retaliation from Tehran. Kharg Island handles about 90% of Iran's oil exports.
Iranian drones hit a key oil terminal in Fujairah in the United Arab Emirates shortly after the attacks on Kharg. Oil loading operations at Fujairah have since resumed, four sources said, but it was unclear if the operations were back to normal.
Fujairah, outside the Strait of Hormuz, is the outlet for about 1 million barrels per day of the UAE's flagship Murban crude oil - a volume equal to about 1% of world demand.
"The U.S. is weighing high-risk ground options including raiding nuclear sites for Iran's enriched uranium, seizing the Kharg Island oil hub, and occupying southern Iran to protect the Strait of Hormuz," SEB analyst Erik Meyersson said in a note.
"All of these imply significant escalation and require a tolerance for substantially higher risk."
OIL RESERVES
The International Energy Agency on Sunday said more than 400 million barrels of oil reserves will begin flowing to the market soon, a record draw aimed at combating price spikes caused by the Middle East war.
Stocks from Asia and Oceania countries will be released immediately and those from Europe and the Americas will be available at the end of March, the agency said.
"As the conflict enters its third week, the lack of a clear denouement has left global markets increasingly worried about an uncontrollable escalatory spiral," SEB's Meyersson said.
Still, U.S. Energy Secretary Chris Wright said on Sunday that he expects the U.S. war with Iran to end within "the next few weeks", with oil supplies rebounding and energy costs declining afterwards.
