Khaberni - Oil prices fell for the second consecutive day on Wednesday, amid expectations that the flow of halted supplies from the Middle East, one of the world's main production regions, could resume after U.S. President Donald Trump hinted at a possible peace agreement to end the war with Iran.
July Brent crude futures fell $1.52, or 1.38 percent, to $108.35 a barrel at 01:03 GMT, after a four percent drop in the previous session. U.S. West Texas Intermediate crude futures for June dropped $1.50, or 1.47 percent, to $100.77 a barrel, after closing down 3.9 percent the previous day.
Unexpectedly on Tuesday, Trump said he would temporarily stop the escorting of ships through the Strait of Hormuz, indicating progress toward a comprehensive agreement with Iran, without providing details about the agreement.
No response from Tehran has been issued yet, as Trump spoke very early in the morning Tehran time.
However, Trump said that the U.S. Navy will continue to blockade Iranian ports. Ordinarily, the Strait of Hormuz carries shipments equivalent to one-fifth of the world's oil and natural gas supplies, and it has been nearly closed since the beginning of the U.S.-Israeli war on Iran on February 28.
The loss of supplies in the global market has led to price increases, with Brent crude trading last week at its highest level since March 2022.
Trump wrote on social media, "We mutually agreed that, while the blockade will still be in full effect, the Freedom Project will be suspended... for a short duration to see if the agreement can be completed and signed."
Trump's announcement came just hours after U.S. Secretary of State Mark Rubio briefed journalists on the efforts, announced on Sunday, to escort stranded tankers through the strait.
