Oil prices moved slightly lower in Asian trading on Monday after U.S. President Donald Trump said the United States would take the lead in an effort to guide vessels stranded in the Strait of Hormuz.
Brent oil futures for July fell 0.3% to $107.88 a barrel by 19:35 ET (23:35 GMT). Losses were constrained, market participants said, because a comprehensive U.S.-Iran peace settlement still appeared distant.
The announcement from Washington follows ongoing disruption to shipping in the Strait of Hormuz after Iran effectively blocked the waterway in late-February. The channel is a critical artery for global energy flows, supplying about 20% of the world’s oil production. Traffic through the strait remained disrupted at the time of the report.
President Trump said on Sunday that the U.S. would begin an effort from Monday to guide ships that have been stranded in the strait, a step he framed as assistance to neutral countries affected by the U.S.-Israel war on Iran. He provided few actual details about the plan but said his representatives were "having very positive discussions" with Iran.
Diplomatic progress has been limited. Iran has pledged to keep Hormuz closed until the United States lifts what Tehran calls a naval blockade against the country. Washington has insisted that Iran first reopen the channel and reach agreement on a nuclear deal, leaving the two sides at an impasse.
In parallel to these geopolitical tensions, the Organization of the Petroleum Exporting Countries and its allies - known collectively as OPEC+ - voted to increase production quotas. On Sunday, OPEC+ said they would raise oil production by 188,000 barrels per day in June. That decision followed the departure of the United Arab Emirates from the producer group on May 1.
Market participants noted that the OPEC+ increase and the U.S. announcement together produced a mixed signal: incremental additional supply from producers but continued uncertainty about physical flows through a strategically vital chokepoint.
Context and market implications
Traders priced in both the prospect of modestly higher OPEC+ output and the potential for continued disruption in shipping. The balance between those forces underpinned the relatively muted downward movement in Brent futures.