Oil prices edged lower in Asian trading after Donald Trump announced a pause in a US operation aimed at securing shipping routes through the Strait of Hormuz, raising expectations of renewed diplomatic efforts with Iran.
Brent crude, the global benchmark, fell by 1.7% to $108 a barrel, while US oil prices declined by 1.6% to $100.60.
The dip follows earlier volatility, with prices having surged by more than 6% at the start of the week amid escalating tensions in the Middle East.
The Strait of Hormuz remains a critical route for global energy supplies, with roughly a fifth of the world’s oil and gas shipments passing through the waterway.
Trump said the US would pause “Project Freedom”, an operation launched to guide commercial vessels through the strait, to allow time for negotiations with Iran.
In a social media post, he said “great progress” had been made towards a potential agreement, though the US would maintain its broader blockade of Iranian ports.
Market analysts say the move suggests Washington may be prioritising diplomacy, but caution that uncertainty remains.
Charu Chanana, an investment strategist at Saxo, said the pause indicates a willingness to give talks another chance, but added there is little evidence yet of meaningful progress in restoring safe passage through the strait.
Meanwhile, Marco Rubio said the initial phase of US-Israeli military action against Iran had concluded, with key objectives achieved.
Tensions in the region persist. Iran has threatened to target vessels in response to earlier strikes, while recent incidents involving ships and regional infrastructure have heightened concerns about supply disruptions.
Erizia Rubyjeana
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