Oil prices dipped Monday following US President Donald Trump’s announcement that the United States would assist in freeing ships stranded in the Strait of Hormuz. However, the absence of a peace deal between the US and Iran kept prices above $100.
Brent crude futures dropped 64 cents to $107.53 a barrel by 2308 GMT after falling $2.23 on Friday. US West Texas Intermediate was at $101.10 a barrel, down 84 cents or 0.82%, following a $3.13 loss on Friday.
Trump stated in a post on his Truth Social site that the United States would guide ships safely out of restricted waters to continue their business operations. Oil prices remained above $100 with no peace deal in sight and limited traffic in the Strait of Hormuz.
Negotiations between the US and Iran continued over the weekend, but both sides refused to move from their respective red lines, according to ANZ analysts. The Organisation of the Petroleum Exporting Countries (OPEC) and its allies announced they would raise oil output targets by 188,000 barrels per day in June for seven members, the third consecutive monthly rise. However, higher volumes will remain largely on paper as long as the Iran war continues to disrupt Gulf oil supplies through the Strait of Hormuz.