The cost of Brent fell below $100 per barrel. WTI cheapened by 6%

The cost of Brent oil, the international benchmark, fell below $100 per barrel in trading on March 16. At the minimum for the day, the raw material cheapened by 3.5% - to $99.54.

The price of futures for the U.S. grade WTI decreased by 5.8% to $92.97 per barrel.

Shares in the U.S. were steadily rising in price against this background. An hour before the close of trading in New York, the main U.S. stock index S&P 500 rose by 1.15%, the index of "blue chips" added a little less than 1%. The "technological" index Nasdaq Composite and the index of small and medium capitalization companies Russell 2000 grew faster - by about 1.4% each.

The VIX index, known as the Wall Street Fear Index, fell nearly 14% to 23.44 points at the moment. That's the lowest since March 10. However, the index is still holding above the 20-point mark, indicating increased volatility.

The price of oil is affected by investors' hopes for the resumption of oil supplies through the Strait of Hormuz, which connects the oil-rich Persian Gulf with the open sea. The strait is controlled by Iran, which effectively cut off shipping through it after the outbreak of war with the US and Israel.

U.S. President Donald Trump has invited other nations to participate in organizing safe navigation in the Strait of Hormuz. "Several countries have told me they are on the way to doing that - some very enthusiastic, some not," Trump said on Monday(quoted by Bloomberg).

At the same time, the US president threatened to intensify strikes on Iran's Kharq Island, this time targeting the oil infrastructure located there. The island plays a crucial role in Iran's oil exports: 90% of the total volume passes through it. The U.S. attacked the island on Friday, March 13, but, as Trump said, did not hit the oil infrastructure for reasons of "decency."

This article was AI-translated and verified by a human editor