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Economy
Oil prices fell by more than a dollar per barrel after US President Donald Trump announced that the United States would begin efforts to free ships stranded in the Strait of Hormuz on Monday morning.
Oil prices fell by more than a dollar per barrel after US President Donald Trump announced that the United States would begin efforts to free ships stranded in the Strait of Hormuz on Monday morning.
Standard Brent crude futures for July delivery fell by $1.83, or 1.69%, to $106.34 per barrel by 22:03 GMT. US West Texas Intermediate crude for July delivery also fell by $1.72, or 1.69%, to $100.22 per barrel.
This decline comes after two weeks of volatile trading that saw prices reach record levels, exceeding $120 per barrel.
President Trump stated via his "Truth Social" platform on Sunday evening that he had launched a military operation named "Operation Freedom," aimed at freeing commercial vessels stranded in the Strait and suffering difficult humanitarian conditions due to a lack of food and essential supplies for their crews.
Trump added that the operation would commence on Monday morning, Middle East time, warning that any interference or disruption would be met with "resolve and strength."
An energy analyst at Bank of America said, "Trump's announcement is seen as a first concrete step towards reopening the shipping lane, after weeks of diplomatic stalemate. The market is currently betting on avoiding an imminent supply disaster."
However, analysts warned that the decline might be temporary, especially after the head of the National Security Committee in the Iranian Parliament, Ibrahim Azizi, threatened not to allow any ship to depart until full coordination with Tehran, considering any American move to guide ships "a violation of the ceasefire."
Indirect negotiations between Washington and Tehran in Islamabad also remain stalled, with Tehran insisting on lifting the naval blockade first before discussing any other issues, which the US administration rejects.
