Global crude oil prices declined for a second consecutive day after US President Donald Trump signaled the possibility of a peace agreement with Iran, raising hopes for the restoration of oil supplies from the Middle East.
According to reports, Brent crude futures fell by $1.89 or 1.7 percent to $107.98 per barrel after recording a sharp 4 percent decline in the previous trading session.
Similarly, US West Texas Intermediate crude futures dropped another $1.83 or 1.8 percent to $100.44 per barrel after previously closing nearly 3.9 percent lower.
On Tuesday, President Trump unexpectedly announced a temporary suspension of operations aimed at providing military protection to ships passing through the Strait of Hormuz, citing progress toward a comprehensive agreement with Iran, though he did not provide details of the potential deal.
There was no immediate response from Tehran following the announcement, but analysts said the development has raised hopes for easing tensions in the region.
Energy market analyst Ann Pham stated that expectations are growing for stranded ships in the Gulf to resume movement, which could gradually restore oil supplies to the global market.
She added that both Brent and West Texas Intermediate prices remain above $100 per barrel, indicating that uncertainty surrounding a peace agreement still persists, and even if an agreement is reached, it may take time for trade flows to normalize fully.
President Trump also clarified that the US Navy would continue the blockade of Iranian ports, while reduced global supply has kept prices elevated.
In a social media statement, Trump said that while the blockade would remain fully in effect, “Project Freedom” would be paused briefly to assess whether a peace agreement could be finalized and signed.
The announcement came just hours after US Secretary of State Marco Rubio briefed reports regarding efforts to provide military protection to tankers stranded in the Strait of Hormuz.
According to the US military, while escorting two ships out of the Gulf through the strait on Monday, several Iranian small boats, cruise missiles, and drones were destroyed.
