Global oil prices are showing a slight decline amid statements from U.S. President Donald Trump regarding the security of shipping in the Strait of Hormuz. Specifically, Brent crude oil futures lost 6 cents (0.1%) and are trading at $108.11 per barrel. At the end of last week, the price of Brent had already decreased by $2.23.
This is reported by Finway
Oil Market Dynamics and the U.S. Position
The American oil grade West Texas Intermediate (WTI) has fallen to $101.50 per barrel, which is 44 cents (0.4%) lower. On Friday, the price of WTI dropped by $3.13. Despite the slight decrease, both grades remain above the psychological mark of $100.
“Until there is a clear and sustainable solution that restores normal flow through the Strait of Hormuz, oil prices are likely to remain elevated,” said Phillip Nova analyst Priyanka Sachdeva.
The Situation Around the Strait of Hormuz
On Sunday, Donald Trump promised that the United States would ensure a “safe passage” for vessels through the Strait of Hormuz; however, tensions in the region remain high. Negotiations for a new nuclear deal between Washington and Tehran remain uncertain, as Iran insists on delaying dialogue until the war is over.
Additionally, the U.S. Central Command (CENTCOM) has begun implementing the “Freedom” project. Its goal is to restore stable shipping through the Strait of Hormuz, which is a strategic route for energy transportation worldwide.