Oil prices ease as US moves to free Hormuz shipping

Global oil prices edged lower on Monday after US President Donald Trump announced that Washington would begin efforts to help ships stranded in the Strait of Hormuz, easing some immediate concerns over disruptions in one of the world’s most critical energy routes.

Brent crude futures slipped 64 cents, or 0.59 percent, to $107.53 a barrel after settling $2.23 lower in the previous session. US West Texas Intermediate crude also declined by 84 cents, or 0.82 percent, to $101.10 per barrel following Friday’s $3.13 drop.

Despite the modest decline, oil prices remained above the $100 mark as markets continued to monitor tensions between the United States and Iran. Shipping activity in the Strait of Hormuz remains limited, while uncertainty surrounding peace negotiations between Washington and Tehran continues to support prices.

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In a post on Truth Social, Trump said the United States had informed regional countries that it would guide ships safely through restricted waterways to allow commercial traffic to resume.

The Strait of Hormuz is a vital passage for global oil exports, and any disruption there has an immediate impact on international crude markets. Investors are closely watching developments as talks between the US and Iran remain stalled.

Analysts at ANZ said negotiations had failed to make progress because both sides continue to hold firm on their red lines. Trump has prioritised securing a nuclear agreement with Tehran, while Iran has reportedly suggested delaying nuclear discussions until after the conflict ends and both sides agree to remove shipping blockades.

Meanwhile, the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, announced on Sunday that seven member states would raise oil output targets by 188,000 barrels per day in June. This marks the third straight monthly increase in production targets.

However, analysts believe much of the planned supply increase may remain theoretical as long as the Iran conflict continues to disrupt Gulf oil flows and shipping routes through the Strait of Hormuz.