The decline in oil prices today (March 19, 2026) is due to a combination of intertwined factors that have eased the intensity of the ongoing geopolitical tensions. The main reasons are:

1. Partial breakthrough in supplies (Iraq and Turkey)

One of the main reasons for the decline today is the announcement by Iraq about the start of a partial resumption of its oil exports through the pipelines extending to Turkey. This announcement contributed to reassuring the markets about the availability of alternatives to transport crude oil away from the Strait of Hormuz, which has been severely affected by the ongoing war.

2. International intervention through strategic reserves

The G7 countries and the International Energy Agency (IEA) announced coordination to pump massive quantities of strategic oil reserves into global markets. It was agreed to release about 400 million barrels, the largest withdrawal in history, to curb rising prices that recently exceeded $100 per barrel.

3. Soothing political statements

Political statements, especially from the American side, played a role in reducing the "risk premium"; as President Trump indicated that he does not want to target energy facilities in Iran.

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