International crude oil futures fell rapidly during early Asian trading on March 20. Brent crude dropped below $101 per barrel, declining 2.85% for the day.

WTI crude futures also saw an expanded loss of 2.7%, trading at $92.95 per barrel.

The price movement followed comments from US Treasury Secretary Janet Yellen, who indicated that the United States might lift sanctions on Iranian oil already transported by sea within the coming days, aiming to ease price pressures stemming from recent Middle East conflicts. Separately, when questioned about military deployments to Iran, US President Donald Trump stated, "We are not sending troops anywhere."

Kristina Clifton, a senior economist and currency strategist at the Commonwealth Bank of Australia, noted in a report that the reassuring remarks from both Trump and Yellen contributed to the downward pressure on oil prices.

In addition, Israel stated it would "pause" attacks on Iranian energy facilities, which helped alleviate market concerns. Israeli Prime Minister Benjamin Netanyahu confirmed in a press conference on March 19 that Israel had carried out a "solo" airstrike on an Iranian natural gas field and would "comply" with President Trump's request to halt further strikes on energy infrastructure. Trump had earlier urged Netanyahu during a White House briefing to avoid targeting Iranian energy installations.

Previously, JPMorgan issued a warning that if the Strait of Hormuz remains closed, the current price divergence would be unsustainable, forcing both Brent and WTI futures to realign upward toward Middle East spot crude prices.

Aditya Saraswat, Vice President at Rystad Energy, suggested in a report that a potential Iranian attack on key oil and gas facilities in the Persian Gulf—as previously threatened—could push crude prices to $120 per barrel. Saraswat added that an attack on facilities in Saudi Arabia, the UAE, and Qatar could result in a global loss of at least 700,000 barrels per day of refined product capacity. Disruption to critical infrastructure such as the Yanbu Port could lead to a reduction of 5 to 6 million barrels per day, potentially driving oil prices to $150 per barrel or higher.