New Delhi, 06 May (H.S.): A significant decline was recorded in international crude oil prices following the US announcement to end Operation Epic Fury and temporarily halt the naval operation Project Freedom securing merchant ships. Brent crude fell 11% to $97.08 per barrel in international markets today. Similarly, West Texas Intermediate (WTI) crude dropped 13.31% to $88.66 per barrel.
US Secretary of State Marco Rubio had informed reporters at the White House that Operation Epic Fury, launched by the US and Israel against Iran 66 days ago, has concluded as its objectives have been achieved. He also stated that expectations of renewed active conflict in West Asia have substantially diminished. Likewise, US President Donald Trump announced via Truth Social that US efforts to escort ships through the Strait of Hormuz would be halted, though he added that the Navy's blockade in the strait would continue.
Hopes of peace in West Asia led to softening in international crude oil prices. Brent crude opened $2.12 lower at $107.75 per barrel today. It briefly rose to $108.91 per barrel before President Trump's announcement to temporarily suspend Project Freedom triggered further decline, pushing Brent to $97.08 per barrel. Prices saw some recovery thereafter. As of 6 PM IST, Brent was trading at $102.60 per barrel.
Similarly, WTI crude opened $2.40 lower at $99.87 per barrel, rose to $102.70, then fell to $88.66 following the Project Freedom suspension news. It was trading at $92.63 per barrel at 6 PM IST.
Market experts believe that even if the West Asia conflict completely ends and the Strait of Hormuz fully reopens, a major decline in international crude prices is unlikely. Tarakeshwar Nath Vaishnav, CEO of TNV Financial Services, stated that peace in West Asia could bring crude prices down to $80-85 per barrel. However, reaching pre-war levels of $60-70 per barrel may take time due to extensive damage to oil infrastructure from wartime bombings.
According to Vaishnaw, Israel heavily targeted Iran's oil infrastructure during the conflict. In retaliation, Iran attacked several Gulf countries considered US allies, causing significant damage to their oil infrastructure. Consequently, crude oil supply from Gulf countries will remain substantially disrupted in coming days. Global crude supply can normalize only after oil infrastructure is rebuilt to pre-war capacity, allowing international prices to return to pre-conflict levels.
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Hindusthan Samachar / Jun Sarkar
