Oil prices dropped around 2% on Thursday as the United States considered easing sanctions on tankers linked to Russia’s so-called shadow fleet. The proposal raised hopes of lower shipping costs and smoother oil supplies. However, fresh attacks on commercial vessels in the Middle East and strikes on Russian energy infrastructure limited the decline.
Brent crude futures fell USD 2.28, or 2.2%, to USD 103.78 a barrel by 0729 GMT. US West Texas Intermediate (WTI) crude declined USD 1.34, or 1.4%, to USD 93.75, reversing gains from the previous session.
The Trump administration is considering easing sanctions on certain shadow fleet vessels that transport oil and petroleum products from countries including Russia, Iran and Venezuela, a US official said on Wednesday.
The move aims to reduce record-high freight rates, which have increased the cost of moving energy supplies and weakened demand for US crude. The administration is discussing whether to allow legally permitted oil shipments on vessels that previously faced sanctions.
The talks follow Washington’s temporary relaxation of sanctions on Russian diesel exports. The decision sought to ease pressure on global fuel supplies and contain rising prices. However, the proposed tanker measures remain under consideration, and the administration has not announced a final decision.
Despite the price drop, tensions around key shipping routes continue to worry traders. Attacks on vessels near the Strait of Hormuz have increased over the past 10 days, raising concerns about disruptions to global energy shipments.
Maritime officials reported that a container ship and a dry bulk carrier sank near the strait within 24 hours after separate projectile strikes. Iran has also threatened to intensify attacks in response to the US blockade of its ports and tighter sanctions. Further damage to refining capacity could complicate the outlook for petroleum supplies.
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