Global crude oil prices recorded a significant drop on Friday, extending losses from earlier sessions following rumors of plans by Western powers to release large-scale emergency fuel reserves. International benchmark Brent crude futures fell 2.5%, retreating below the triple-digit mark to $99.78 per barrel, while the U.S. benchmark West Texas Intermediate (WTI) plunged 3.7% to $89.42 per barrel.
Market sentiment shifted after a Reuters report revealed that European Union (EU) nations were refining a proposal put forward by France to address energy supply tensions. The plan involves the emergency release of 50 million barrels of diesel fuel by EU member states, alongside an additional 50 million barrels of crude oil from International Energy Agency (IEA) member countries, aimed at easing global supply constraints.
These crisis talks in Brussels were prompted by persistent pressure from President Donald Trump's administration. U.S. Treasury Secretary Scott Bessent publicly urged European allies to immediately release a portion of their strategic reserves, asserting that the agricultural, logistics, and business sectors in the United States should not have to bear the burden of the global diesel shortage alone.
Washington's pressure comes amidst Europe's critical reliance on American fuel supplies. According to IEA data, the U.S. supplied nearly half of the EU's total diesel imports last August. This places the continent at significant risk should the White House enforce a ban on the export of refined petroleum products—a move Trump has frequently threatened in the past.
However, the drop in crude oil prices remains overshadowed by escalating military tensions in the waters of the Gulf. In the previous session, prices surged following confirmation that the Pentagon was deploying a third aircraft carrier strike group, along with 2,000 Marines, to the Middle East; this kept the market on high alert regarding the potential for a new armed conflict that could shut down the Strait of Hormuz shipping lanes at any moment.
