US President Trump's Announcement Leads to Drop in Crude Oil Prices

Washington DC. With the announcement of US President Donald Trump to provide safe passage to ships stopped in the Strait of Hormuz, the price of crude oil in the world market has seen some decline. 

On Monday, oil prices fell after Trump stated on his social media Truth Social on Sunday that the US would help in safely removing the ships trapped in those areas. The price of Brent crude in the market has decreased by 64 cents to $107.53 per barrel, while US West Texas Intermediate (WTI) has fallen by 84 cents to $101.10. Trump has pledged to show ships a safe way through the restricted waterway and facilitate trade activities for the benefit of Iran, the Middle East, and the US.

Although Trump's move has provided some relief to the market, oil prices are still above $100 due to the failure to reach a peace agreement between the US and Iran. Trade movement in the Strait of Hormuz is still limited, and the ongoing talks between the two countries have not reached a conclusion.

According to analysts, peace talks have slowed down as both sides are unwilling to back down from their positions. Trump has prioritized the nuclear deal with Tehran, while Iran has maintained its stance of not discussing the nuclear issue until the war ends and the blockade on shipping in the Gulf region is lifted. 

Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC Plus) has decided to increase its oil production target for June by 188,000 barrels per day.