Oil prices decline following Trump's statements on escorting ships in the Strait of Hormuz
Kyiv • UNN
Brent crude fell to $106 following Trump's statement on vessel protection. The U.S. President also reported on negotiations with Iran regarding ending the war.
Oil prices declined following U.S. President Donald Trump's announcement regarding the commencement of escorting neutral vessels through the Strait of Hormuz. This was reported by Bloomberg, according to UNN.
Details
Brent crude futures fell by 1.9% to $106.16 per barrel, continuing a decline for the third consecutive day. American West Texas Intermediate crude dropped below $100 per barrel.
"This process is aimed at liberating people, companies, and countries that have done absolutely nothing wrong,"
Reasons for the decline
The U.S. President also reported "very positive talks" with Iran regarding a potential end to the war, without providing further details.
Trump calls Iran's war settlement proposal unacceptable03.05.26, 23:13 • 2908 views
Previously, oil prices had risen sharply amid the blockade of the Strait of Hormuz. Iran had been restricting the exit of vessels from the Persian Gulf, while the U.S. intercepted ships linked to Iranian ports.
Trump also allowed for the possibility of using force in the event of interference with the passage of vessels.
"If this process is obstructed, this interference will have to be addressed with force,"
Market Context
Since the beginning of the year, Brent crude prices have risen by approximately 74%, reaching highs not seen since 2022. Meanwhile, OPEC+ countries agreed over the weekend to a symbolic increase in production quotas.
According to sources, Iran is already cutting oil production due to limited storage capacity amid the blockade.