Brent crude futures fell by $1.89, or 1.7%, to $107.98 per barrel, following a sharp 4% drop in the previous session. U.S. West Texas Intermediate (WTI) crude also fell by $1.83, or 1.8%, to $100.44, following a 3.9% decline the previous day.
On Tuesday, U.S. President Donald Trump unexpectedly announced a temporary suspension of escort operations for ships through the Strait of Hormuz, citing progress in negotiations on a comprehensive agreement with Iran.
“This may signal a possible de-escalation and offers hope for the release of ships detained in the Persian Gulf, which could potentially restore supplies to the market,” noted An Pham, senior oil research analyst at LSEG.
However, he added that oil prices remain high because the prospects for a peace deal are still uncertain, and even if an agreement is reached, it will take time for trade flows to fully resume.
Read also: The U.S. has submitted a resolution to the UN Security Council regarding the protection of shipping in the Strait of Hormuz.
Meanwhile, U.S. crude oil inventories have been declining for the third consecutive week, as have gasoline and distillate inventories, according to data from the American Petroleum Institute.
According to sources, crude oil inventories fell by 8.1 million barrels for the week ending May 1. Gasoline inventories fell by 6.1 million barrels, and distillate inventories by 4.6 million barrels compared to the previous week.
As reported by Ukrinform, oil prices fell on Tuesday amid signs that the U.S. may ease its blockade of the Strait of Hormuz, opening the way for oil supplies from the Middle East.
