Oil Prices Dip as Trump Announces US Plan to Free Ships in Strait of Hormuz

Global oil prices edged lower on Monday after U.S. President Donald Trump announced that the United States would begin an operation to assist and free ships stranded in the Strait of Hormuz. However, ongoing tensions between the United States and Iran, along with limited maritime traffic, continued to keep oil prices above the $100 per barrel mark.

Brent crude futures fell by 64 cents, or 0.59%, to $107.53 a barrel after a previous decline of $2.23. Similarly, U.S. West Texas Intermediate (WTI) dropped 84 cents, or 0.82%, to $101.10 a barrel, following a sharp loss in the previous trading session.

Trump stated:

“For the good of Iran, the Middle East, and the United States, we have told these Countries that we will guide their Ships safely out of these restricted Waterways, so that they can freely and ably get on with their business,”

posting the message on his Truth Social platform.

Despite the price drop, oil markets remain elevated as no peace agreement has been reached between the U.S. and Iran, and shipping activity in the Strait of Hormuz remains restricted. Diplomatic negotiations continued over the weekend, with both sides reportedly evaluating responses but showing little progress.

Analysts note that peace talks remain stalled, as both countries maintain firm positions on key issues. While Washington is pushing for a nuclear agreement, Tehran has suggested delaying nuclear discussions until after the conflict is resolved and sanctions or blockades are lifted.

In addition, the Organization of the Petroleum Exporting Countries and allies (OPEC+) announced plans to increase oil output by 188,000 barrels per day in June. However, analysts believe this increase may remain largely theoretical if geopolitical tensions continue to disrupt supply routes through the Strait of Hormuz.