US, May 04 : Brent Crude, WTI Decline After Trump’s Remarks on Gulf Shipping
Global oil prices edged lower on Monday after U.S. President Donald Trump announced plans to help secure maritime traffic through the Strait of Hormuz, easing some fears over disruptions to global crude supplies. Despite the decline, crude benchmarks remained above the crucial $100 per barrel mark as uncertainty surrounding U.S.-Iran negotiations continued to support the market.
Brent crude futures slipped by 64 cents, or 0.59 per cent, to trade at $107.53 per barrel after closing $2.23 lower in the previous session. Meanwhile, U.S. West Texas Intermediate (WTI) crude fell 84 cents, or 0.82 per cent, to $101.10 a barrel, following Friday’s decline of $3.13.
Trump Promises Assistance for Ships in Hormuz Corridor
In a post shared on his social media platform, Truth Social
, Trump said the United States would work to guide commercial vessels safely through the Strait of Hormuz, where shipping activity has remained heavily restricted due to ongoing regional tensions.
“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,” Trump wrote, signalling Washington’s intention to prevent further disruption to global energy trade.
The announcement helped calm some investor concerns over immediate supply shortages, leading to a modest pullback in crude prices after recent sharp rallies.
No Breakthrough in U.S.-Iran Peace Negotiations
Even with efforts to secure shipping lanes, oil markets continued to find support from the absence of a peace agreement between Washington and Tehran. Diplomatic discussions between the two countries reportedly continued over the weekend, but both sides remained firm on their core demands.
Analysts at ANZ noted that negotiations had effectively stalled, with neither side willing to compromise on major red lines.
The United States continues to prioritise a renewed nuclear agreement with Iran, while Tehran has proposed delaying nuclear-related discussions until after the conflict ends and restrictions on Gulf shipping are lifted.
OPEC+ Announces Another Production Increase
Adding to market developments, OPEC+ announced on Sunday that it would increase oil production targets by 188,000 barrels per day in June for seven participating countries. The move marks the third consecutive monthly supply increase by the producers’ alliance.
The output adjustment is largely similar to the increase approved for May, excluding the contribution of the United Arab Emirates, which officially exited OPEC earlier this month.
However, analysts believe much of the planned production increase may not immediately reach international markets because the ongoing Iran conflict continues to disrupt transportation routes through the Strait of Hormuz, a vital artery for global oil exports.
Energy Markets Remain Highly Sensitive
Despite Monday’s decline, energy traders remain cautious as geopolitical tensions in the Gulf region continue to dominate sentiment. The Strait of Hormuz handles nearly one-fifth of global oil shipments, making any disruption in the area a major concern for world energy markets.
With peace negotiations still uncertain and shipping risks unresolved, analysts expect crude prices to remain volatile in the coming weeks.