Some analysts confidently predict an end to spiked oil prices: File Image/Pixabay

Oil trading on Monday lost considerable steam after Washington revealed that the U.S. is allowing Iranian oil tankers to pass through the Strait of Hormuz and will soon announce a coalition of countries to escort ships through the Strait.

According to reports, a Pakistan-flagged Aframax tanker, Karachi, sailed out of the Persian Gulf through the Strait on Sunday, as did two Indian vessels, and one of 15 Turkish-owned ships; additionally, France and Italy requested talks with Iran about allowing their ships safe passage.

Meanwhile, U.S. president Donald Trump said he postponed a planned visit to Beijing at the end of March due to the war with Iran, after earlier suggesting he would not make the trip if China didn’t contribute warships to help escort merchant vessels in and out of the Gulf through the Strait (a questionable proposition given that Tehran is allowing Chinese ships to navigate the waterway safely).

For their part, European Union foreign ministers on Monday held a meeting to consider naval action to help reopen the Strait

West Texas Intermediate settled down 5.28 percent to $93.50 per barrel, and Brent settled down 2.84 percent to $100.21 per barrel.

Calming the fears of traders somewhat was the International Energy Agency, which last week agreed to a record release of 400 million barrels in emergency reserves, and on Monday said it has more that can be made available if needed.

Richard Saperstein, an analyst at Treasury Partners, added to the emerging sense of optimism regarding the U.S./Iran war by stating, “While it’s possible for oil prices to exceed $100 in the near-term, we don’t expect prices to remain above this threshold for the long-term….oil prices will decline as tensions subside and oil flows return to pre-crisis levels.”