Brent crude prices fell over 6% on March 25. The White House reportedly presented a 15-point peace plan to Iran to end weeks of conflict. This potential diplomatic resolution eased market fears regarding supply disruptions in the Strait of Hormuz.
The international benchmark dropped to approximately $94 per barrel. Exxon Mobil shares traded down between 1% and 2%. Chevron and ConocoPhillips also saw share price declines of 1% to 2%. This move reflects a reduction in the geopolitical risk premium previously priced into oil.
Significant uncertainty persists as Iranian officials denied being in direct talks. Military hostilities with Israel continue despite the reported proposal. Shell’s CEO warned that Europe could face fuel shortages by April if the situation remains unresolved.