Oil prices eased in Asian trading on Wednesday after US President Donald Trump signaled hopes for a new agreement with Iran to end the conflict.
Brent crude fell 1.7% to $108 per barrel, while US crude dropped 1.6% to $100.60 after Trump announced a temporary pause of “Project Freedom,” the US-led operation guiding ships through the Strait of Hormuz.
Oil prices had surged earlier this week amid escalating Middle East tensions and threats to shipping in the strait, which handles around 20% of global oil and gas trade.
Trump said the pause would allow time for negotiations with Iran, claiming “great progress” had been made toward a possible agreement. However, analysts cautioned that there is still little evidence of a breakthrough in reopening safe trade routes.
US Secretary of State Marco Rubio said Washington prefers a peaceful resolution and hopes for a deal, while Iranian officials warned the situation remains unresolved.