Oil prices declined in energy trading as markets continued to assess the economic impact of the closure of the Strait of Hormuz.

Benchmark U.S. crude fell by $1.26 to $90.90 per barrel, while Brent crude, the global benchmark, also dropped $1.26 to $93.72 per barrel, The Caspian Post reports, citing Al Jazeera.

Despite the decline, both benchmarks remain significantly higher than the roughly $70 per barrel level recorded before the conflict began.

Market attention remains focused on the possibility of an agreement between the United States and Iran to reopen the Strait of Hormuz. Such a move would restore oil shipments from the Gulf region and help ease inflationary pressures fueled by supply disruptions.

Japan, which relies on imports for nearly all of its oil needs, has so far managed to limit the impact on gasoline and other fuel prices through the release of strategic reserves.

According to analyst Stephen Innes, crude shortages have already prompted refiners across Asia and Europe to sharply cut processing rates.

He noted that the pressure is no longer limited to crude oil inventories and is increasingly affecting key fuels that support economic activity, including gasoline, diesel, jet fuel, liquefied petroleum gas (LPG), and naphtha.