Brent crude fell more than 3% to around $99 a barrel on Friday as European governments weighed the release of strategic oil reserves to curb rising fuel costs. EU member states were reportedly considering a French proposal to tap crude and fuel stockpiles, under growing pressure from Washington to address diesel shortages and head off potential US export restrictions.
Treasury Secretary Scott Bessent urged European partners to help stabilise supplies, which have been unsettled by turmoil in the Persian Gulf and Ukrainian strikes on Russian refineries. Middle Eastern crude flows have almost returned to pre-war levels, but uncertainty persists, with Washington and Tehran still far from a durable agreement to fully reopen the Strait of Hormuz.
Shipping risks also remain elevated following reported tanker attacks, while the US has reportedly reinforced air defences protecting energy infrastructure in Saudi Arabia and Qatar.
