Oil Prices Fell For The First Time Since The Middle East War Began

Because of the actions of the U.S. government.

Oil prices fell on March 6 for the first time in six days as the U.S. government considers intervening in the futures market to curb price rises and issued exemptions for Russian crude purchases to ease supply constraints due to war in the Middle East, Reuters wrote.

Brent futures fell 95 cents, or 1.1%, to $84.46 a barrel, while West Texas Intermediate declined $1.08, or 1.3%, to $79.93.

But Brent rose 16.4% this week and WTI jumped 19.2%, the fastest weekly rise since Russia's full-scale invasion of Ukraine began in February 2022.

"A day-by-day shutdown at Hormuz would have two major implications for the oil market: the inability to store 20 million barrels per day and the lack of stable transportation, which could lead to higher global energy prices," said Priyanka Sachdeva, senior market analyst at Phillip Nova.

With the significant increase, the U.S. Treasury Department is expected to announce measures to counter the spike in energy prices due to the war in Iran, including possible action in the oil futures market.

The move would be an unconventional attempt by Washington to influence energy prices through financial markets rather than physical oil supplies.

The U.S. Treasury Department also on Thursday gave companies permission to buy Russian crude stored on tankers under sanctions. The move is aimed at easing supply constraints that have forced refiners at Asian refineries to cut back on processing.

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