Oil slips as Trump vows to free ships in Hormuz

Oil prices slipped Monday after U.S. President Donald Trump said Washington would begin an effort to free ships stranded in the Strait of Hormuz. Brent crude futures fell 64 cents, or 0.59%, to $107.53 a barrel by 23:08 GMT, while U.S. West Texas Intermediate stood at $101.10 a barrel, down 84 cents, or 0.82%, after Friday's losses. The move came even as traders weighed the implications of ongoing tensions in the region and the potential for further disruptions to critical shipping routes in the Gulf.

Prices remain above $100 a barrel as there is still no U.S.-Iran peace deal in sight. Negotiations have stalled, with both sides sticking to hard red lines. Traffic through the Strait of Hormuz remains restricted, keeping supply fears in focus even as supply lines show tentative signs of resilience.

In the backdrop, OPEC+ said it would raise oil output targets by 188,000 barrels per day in June, the third straight monthly increase. The decision mirrors the group’s modest attempt to ease prices, but the actual impact could be limited as long as Gulf shipments stay at risk amid the Iran conflict.

Analysts noted that while supply targets are being raised on paper, the physical flow of crude may not fully reflect those numbers while the Strait of Hormuz remains a flashpoint. ANZ analysts commented that peace talks have stalled as both sides hold firm on core positions, underscoring the ongoing political headwinds facing the market.

For traders, the key remains the trajectory of talks and any shift in shipping risk. A breakthrough in diplomacy could relieve supply fears and pressure prices lower, while any escalation would likely push prices higher again. Market watchers will be watching headlines closely as the oil market navigates geopolitics, shipping disruptions, and the evolving OPEC+ outlook.

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