Oil prices edged lower after President Donald Trump announced that the United States would begin efforts to assist ships stranded in the Strait of Hormuz. However, prices remained above $100 per barrel, supported by the absence of a peace agreement between the U.S. and Iran.
Brent crude and West Texas Intermediate both declined slightly, extending previous losses amid ongoing geopolitical tensions and supply disruptions that continue to support the market.
Analysts note that the market is still driven by strong fundamental factors, mainly supply disruptions and political uncertainty, suggesting prices may remain elevated unless a clear and lasting solution restores normal oil flows through the Strait of Hormuz.
Trump stated that the U.S. will work to secure safe passage for vessels through the strait, but the lack of any peace agreement and continued shipping constraints have kept prices at high levels.
On the other hand, OPEC+ announced plans to increase production targets for several members, marking the third consecutive monthly increase. However, its impact may remain limited due to ongoing disruptions affecting oil supply through the Strait of Hormuz.
Stay informed about global markets through our previous analyses. and Now, you can also benefit from LDN company services via the LDN Global Markets trading platform.
