OIL prices fell for a second consecutive session on Wednesday as markets reacted to signals that supply disruptions from the Middle East could ease, following remarks by US President Donald Trump suggesting progress towards a potential peace deal with Iran.
Brent crude futures declined by US$1.89, or 1.7%, to US$107.98 a barrel as of 0340 GMT, after dropping 4% in the previous trading session. US West Texas Intermediate (WTI) crude fell by US$1.83, or 1.8%, to US$100.44, following a 3.9% fall a day earlier.
Reuters reported on Wednesday that the movement in prices came after Trump unexpectedly indicated on Tuesday that he would briefly pause a US operation to escort ships through the Strait of Hormuz, citing what he described as progress towards a comprehensive agreement with Iran.
He did not provide details of the proposed deal, and Tehran offered no immediate response.
“This signals potential de-escalation and raises hopes for the release of stranded vessels inside the Gulf, which could gradually bring supply back to the market,” said Anh Pham, senior research specialist for oil at LSEG.
However, Pham cautioned that prices remained elevated, noting that both Brent and WTI were still trading above US$100 per barrel amid continued uncertainty over whether a peace agreement would materialise.
Even in the event of a deal, she said, it would take time for global trade flows to normalise.
Trump also confirmed that the US Navy would maintain its blockade of Iranian ports despite the temporary pause in escort operations.
“We have mutually agreed that, while the Blockade will remain in full force and effect, Project Freedom … will be paused for a short period of time to see whether or not the Agreement can be finalized and signed,” Trump wrote on social media.
The announcement followed a briefing earlier in the day by US Secretary of State Marco Rubio, who outlined the American effort launched over the weekend to escort stranded tankers through the strategic waterway.
The US military has reported engaging Iranian small craft and destroying missiles and drones while facilitating the movement of commercial vessels.
Market analysts said the ongoing disruption in the Strait of Hormuz had contributed to a drawdown in global oil inventories, as refiners attempt to offset reduced supply from the region.
In the United States, crude inventories fell for a third consecutive week, while stocks of gasoline and distillates also declined, according to market sources citing American Petroleum Institute data.
Crude inventories reportedly dropped by 8.1 million barrels in the week ending 1 May, with gasoline stocks falling by 6.1 million barrels and distillates declining by 4.6 million barrels.
Despite the recent easing in prices, oil markets remain highly sensitive to developments in the Gulf, with Brent crude recently reaching its highest level since March 2022 amid concerns over prolonged supply disruption from one of the world’s most critical energy transit routes. - May 6, 2026
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