Oil Prices Slide Below $100 as Trump Pauses Strait of Hormuz Escort Plan Amid De-escalation Hopes

Crude oil prices extended their decline on Tuesday after U.S. President Donald Trump announced a temporary pause in the plan to escort commercial vessels through the Strait of Hormuz. The decision came just days after the security operation was introduced, easing immediate fears of an escalation in the region.

Following the announcement, traders began pricing in the possibility of reduced tensions between the United States and Iran. Brent crude slipped to around $106.50 per barrel, while West Texas Intermediate (WTI) dropped sharply below $100, trading at approximately $98.55 at the time of reporting.

Earlier in the week, military activity in the Strait had heightened concerns. U.S. Central Command confirmed escort operations for merchant vessels, while Iran responded with warnings of potential strikes on U.S. naval assets. Reports of warning shots being fired added to market uncertainty, although U.S. officials denied any direct attack claims.

Sentiment shifted again after Trump indicated that “Project Freedom” would be paused to allow space for a possible agreement. The move was widely interpreted by traders as a signal that diplomatic negotiations could still be possible, even though no formal peace deal has been confirmed.

Meanwhile, U.S. Secretary of State Marco Rubio called on the United Nations to intervene and pressure Iran to de-escalate, including stopping attacks on vessels and removing maritime threats. Despite the diplomatic push, oil markets remain volatile as investors watch for clearer developments.

source: oilprice