Crude Prices Slide Below $100 As US Halts Hormuz Escort Plan

Global oil prices fell for a second straight day after United States President, Donald Trump, announced a pause in plans to escort vessels through the strategic Strait of Hormuz under its Project Freedom plan.

The move raised cautious optimism about a potential de-escalation in tensions around the vital oil corridor, pushing benchmark crude prices lower.

Brent crude dipped to $103.4 per barrel from about $110 on Tuesday while West Texas Intermediate (WTI) dropped under $100, trading at $95.34 per barrel at the time of filing this report.

In a social media post, Trump said the United States and relevant parties had “mutually agreed” to temporarily suspend the maritime initiative, known as Project Freedom, to allow room for negotiations toward a possible agreement.

He noted that although the blockade in the area remains in place, the pause is intended to test whether a deal can be finalised.

The development comes just days after the U.S. military unveiled the escort plan in response to rising threats in the region.

Earlier, the United States Central Command confirmed that two U.S. destroyers had escorted American merchant vessels through the strait.

However, Iran reacted sharply, warning it could target U.S. naval forces in the area. Tehran also claimed it fired warning shots at a U.S. warship, an assertion denied by U.S. officials.

Oil markets had initially weakened following Trump’s earlier announcement but later rebounded after Iran’s threats heightened fears of disruption to global supply.

Despite the latest decline in prices, no concrete steps toward a peace agreement have been announced while uncertainty pervades the global oil market amidst significant pressure to supply and prices.

Many Nigerians are optimistic that a reduction in the global crude prices would cause a reduction in prices of petroleum products amidst rise in transport and logistics cost as well as the general cost of living.