The decline follows a sharp rally in the previous session, when Brent surged 5.7% and WTI climbed 4.6% on rising concerns over further escalation. Despite the strong gains, trading activity in the front-month Brent contract remained subdued, with volumes hitting their lowest level since February 27, just ahead of the United States and Israel initiating strikes on Iran.
Crude oil price on March 27
Brent futures declined 90 cents, or 0.8%, to $107.11 per barrel at 0024 GMT, while U.S. West Texas Intermediate (WTI) fell 83 cents, or 0.88%, to $93.65 per barrel, giving up part of the gains seen in the previous session.Despite the recent surge, Brent is set for its first weekly decline in six weeks, while WTI is on track for a second straight weekly loss, as Trump continued to highlight the possibility of a resolution to the war.
In a post on Truth Social on Thursday, Trump said, “As per Iranian Government request … I am pausing the period of Energy Plant destruction by 10 Days to Monday, April 6, 2026, at 8 P.M., Eastern Time.”Meanwhile, the Pentagon is preparing to deploy thousands of troops from the U.S. Army’s 82nd Airborne Division to the Middle East, according to two sources cited by Reuters, signalling a continued military buildup even as diplomatic efforts are underway.Iran has outlined a set of conditions for ending the conflict, stating that the first requirement is a complete halt to attacks and assassinations. It has called for firm guarantees to prevent any recurrence of war, along with a clear mechanism to assess and ensure compensation for war-related damages. Tehran also emphasised that hostilities must end not only against Iran but also against resistance groups across the region.The conflict has severely disrupted flows through the Strait of Hormuz, which typically handles about one-fifth of global crude oil and LNG shipments. International Energy Agency chief Fatih Birol described the situation as more severe than the oil shocks of the 1970s combined with the gas market impact of the Russia-Ukraine war.
What’s next?
International brokerage Macquarie has said that even if tensions ease in the near term, oil prices are likely to find support in the $85–$90 range, with a gradual move back toward $110 until normal flows through the Strait of Hormuz resume. The note added that if disruptions persist through April, Brent could still climb to $150 per barrel.Looking ahead, crude prices could move higher from current levels. According to Kayanat Chainwala of Kotak Securities, oil may rise to $120 per barrel in the near term and potentially touch $150 if the conflict continues.
Nuvama Institutional Equities echoes the same view. The continued closure of the Strait of Hormuz, which handles around 20 million barrels per day, could push crude prices to the $110–150 per barrel range.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
