Brent falls below $100 as oil markets pull back amid hopes for peace, profit-taking
Crude prices slide on hopes of Middle East stabilisation and technical correction
Brent crude slipped below the $100-per-barrel mark in early Monday trading, easing from recent war-driven highs as traders weighed the possibility of stabilisation in Middle East shipping routes and profit-taking after weeks of sharp gains.
As of 7:42 am Tokyo time on May 25, Brent crude futures were trading at about $98.83 per barrel, down 4.55%, according to Oilprice.com market data .
US benchmark West Texas Intermediate (WTI) crude also fell sharply to around $92.14 per barrel, down 4.62%.
The decline comes after oil prices surged earlier this year following the outbreak of the Iran war on February 28, which disrupted tanker traffic through the Strait of Hormuz — a critical route that normally carries roughly one-fifth of global oil consumption.
Despite Monday’s pullback, markets remain highly volatile.
Analysts say traders are balancing several competing factors:
Continuing supply disruptions in the Gulf
Aggressive releases from strategic reserves
Fears of weaker global demand from high energy prices
Speculation over possible diplomatic backchannel talks
Technical market corrections after oil’s rapid climb above $100.
Drop below $100 'psychological level'
The drop below the psychological $100 level for Brent is significant because the benchmark had remained elevated for weeks amid fears of prolonged supply shortages.
However, energy analysts warn that the underlying market remains extremely tight.
The International Energy Agency recently warned the oil market could enter a “red zone” by July or August as inventories rapidly decline and Middle Eastern exports remain constrained.
Global crude and fuel inventories have been falling sharply in recent months, while the US Energy Information Administration reported major drawdowns in both commercial oil stockpiles and the US Strategic Petroleum Reserve last week.
Hormuz watch
Meanwhile, Murban crude — the flagship grade exported by the UAE — remained above $102 per barrel in early Asian trade, reflecting continued demand for Gulf export grades that remain accessible despite regional shipping disruptions.
Oil traders are now closely watching developments around Hormuz, where even temporary improvements in tanker traffic could ease immediate price pressure, though analysts caution that any renewed escalation could quickly send crude prices sharply higher again.
