Oil slips after Trump says US will help free ships stranded in Strait of Hormuz

Oil prices eased on Monday (4 May) after US ‌President Donald Trump said the United States would begin an effort to free up ships stranded in the Strait of Hormuz, but the lack of a US-Iran peace deal kept prices supported above $100.

Brent ​crude futures fell 64 cents, or 0.59%, to $107.53 a barrel by 2308 GMT ​after settling down $2.23 on Friday.

US West Texas Intermediate was at $101.10 a ⁠barrel, down 84 cents, or 0.82%, following a $3.13 loss on Friday.

"For the good of ​Iran, the Middle East, and the United States, we have told these Countries that ​we will guide their Ships safely out of these restricted Waterways, so that they can freely and ably get on with their business," Trump wrote in a post on his Truth Social site ​on Sunday.

Oil prices remained above $100 a barrel with no peace deal in sight ​and traffic in the Strait of Hormuz still limited. Negotiations between the US and Iran continued over ‌the ⁠weekend, with the countries assessing responses from each other.

"Peace talks have been stalled as both sides refuse to move on their respective red lines," ANZ analysts said in a note.

Trump has made a nuclear deal with Tehran a priority, while Iran has proposed ​to set aside nuclear ​issues until after ⁠the war ends and the foes agree to lift opposing blockades on Gulf shipping.

On Sunday, the Organization of the Petroleum Exporting Countries ​and its allies, or OPEC+, said they will raise oil output ​targets by ⁠188,000 barrels per day in June for seven members, the third consecutive monthly rise.

The increase is the same as that agreed for May minus the share of the United Arab ⁠Emirates, ​which left OPEC on 1 May. However, the higher volume ​will remain largely on paper as long as the Iran war continues to disrupt Gulf oil supplies ​through the Strait of Hormuz.