New york: Global oil prices experienced a significant drop, declining more than 5% following successful navigation of the Strait of Hormuz by a ship, even as tensions between Iran and China continue to escalate.

According to Thai News Agency, the prices closed sharply lower on March 16, 2026. This drop was primarily due to reports that some oil tankers managed to resume their passage through the critical Strait of Hormuz, despite the ongoing conflict in Iran. The development occurred as U.S. allies declined President Donald Trump's request for full cooperation to ensure the opening of shipping lanes in the area.

The oil market, however, saw a boost in confidence after the head of the International Energy Agency (IEA) indicated that preparations were underway to release additional strategic oil reserves. This move aims to alleviate concerns about inflation and reduce the pressure from rising energy costs.

In the futures market, Brent crude suffered a decline of $2.93, or 2.8%, settling at $100.21 per barrel. Meanwhile, U.S. WTI crude saw a more significant drop of $5.21, or 5.3%, closing at $93.50 per barrel.

Analysts interpret this decline as a temporary easing of market concerns regarding supply constraints. Nonetheless, they emphasize that geopolitical uncertainties in the Middle East remain a significant risk factor, necessitating close monitoring by investors in the upcoming period.