Crude oil prices slip up to nearly 3 pc as Donald Trump signals Hormuz relief

Global crude oil prices eased on Monday, slipping nearly 3 per cent after US President Donald Trump signalled steps to ease maritime disruptions in the Strait of Hormuz. However, the absence of a breakthrough in US-Iran talks kept prices elevated above the $100-per-barrel mark.

The international benchmark Brent crude fell 66 cents, or 0.61 per cent, to $107.51 per barrel. US West Texas Intermediate (WTI) declined more sharply, dropping $2.83, or 2.77 per cent, to $99.11 a barrel. On the domestic front, crude oil futures on the Multi Commodity Exchange (MCX) were trading at ₹9,621, down ₹44 or 0.45 per cent from the previous close.

The pullback in prices followed Trump’s indication that Washington would facilitate the safe passage of vessels stranded in the Strait of Hormuz — one of the world’s most critical energy chokepoints. In a post on Truth Social, he said the US would help ensure that ships, including those from neutral countries, could resume operations without disruption, raising hopes of partial de-escalation in West Asia.

Despite the decline, crude prices remained firm as tensions between Washington and Tehran showed little sign of immediate resolution. Shipping through the Strait of Hormuz continues to face constraints, and ongoing negotiations between the two sides have yet to yield a concrete agreement. While the US is pressing for progress on a nuclear deal, Iran has indicated it prefers to defer nuclear discussions until after the conflict subsides, alongside easing restrictions on Gulf shipping.

Adding another layer to the supply outlook, the OPEC+ grouping announced that seven member nations would raise output by 188,000 barrels per day in June — marking the third consecutive monthly increase. However, analysts suggest the additional supply is unlikely to significantly cool prices in the near term, given the continuing disruptions to oil flows in the region.

Meanwhile, equity markets reflected cautious optimism. In India, benchmark indices Sensex and Nifty were trading around 1 per cent higher in early deals. Across Asia, markets rallied sharply, with Japan’s Nikkei, Hong Kong’s Hang Seng and South Korea’s Kospi rising by as much as 4 per cent, tracking easing oil prices and hopes of reduced geopolitical risk.

With IANS inputs