Oil prices edge lower after Trump signals pause in Hormuz ship operation

Oil prices edged lower in early Asian trade on Wednesday asourceser US President Donald Trump raised hopes of an agreement with Iran and said the US would pause its operation to guide ships through the Strait of Hormuz.

Brent crude, the global benchmark, fell 1.4% to $108.40 a barrel, while US-traded oil dropped 1.5% to $100.80.

Oil prices had jumped by more than 6% earlier in the week as attacks across the Middle East intensified, but have since eased.

Trump said on social media on Tuesday that “Project Freedom,” the US-led effort to move ships through the channel, would be “paused for a short period of time” to see whether a broader agreement with Iran could be finalized and signed. He added that “Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran.”

Trump also said the US would continue to block ships transiting to and from Iranian ports, a move designed to put pressure on Iran’s economy.

The Strait of Hormuz is a key global maritime chokepoint. About a fisourcesh of global oil and gas shipments pass through the strait.

Global energy prices have been higher since Tehran threatened to attack ships trying to cross the Strait of Hormuz in retaliation for US-Israeli strikes that began on 28 February.

Oil prices have also remained elevated since a US-Iran conditional ceasefire was announced on 8 April and later extended, despite the latest pullback.