Oil Prices Decline as Trump Signals Hormuz Relief

Global crude oil prices declined by nearly 3 per cent on Monday after US President Donald Trump hinted at de-escalation in the West Asia conflict. Trump said Washington would help ensure safe passage for ships through the Strait of Hormuz, enabling them to continue operations without disruption.

The easing in oil prices came after Trump's post on Truth Social, where he noted that several countries had sought US assistance to free vessels stranded in the Strait of Hormuz. However, despite the decline, crude prices remained elevated amid the absence of a peace agreement between Washington and Tehran, with shipping through the Strait of Hormuz still constrained.

The Organisation of the Petroleum Exporting Countries and its allies (OPEC+) announced that seven member nations would increase output by 188,000 barrels per day in June. However, the additional supply is unlikely to significantly impact the market in the near term, as disruptions linked to the Iran conflict continue to affect oil flows through the Strait of Hormuz.