Oil prices ease as US seeks reopening of the Hormuz Strait

Oil prices edged lower in early Wednesday trade in Asia after US President Donald Trump raised hopes for an agreement with Iran to end the war.

Trump said the US would pause its operation to guide ships through the key Strait of Hormuz trade route — a move that triggered an escalation in attacks in the region — to see if a deal could be made.

Brent, the global benchmark for crude, fell by 1.4% to $108.40 (£79.86) a barrel, while US-traded oil fell by 1.5% to $100.80.

The price of oil jumped by more than 6% earlier in the week as attacks across the Middle East intensified, but has since gradually eased.

Global energy prices have surged since Tehran threatened to attack ships trying cross the Strait of Hormuz, in retaliation against US-Israeli strikes since 28 February.

About a fifth of global oil and gas shipments cross the strait.

Oil prices overall have been higher since the US-Iran conditional ceasefire, which was announced on 8 April and later extended.

Trump said on social media on Tuesday that Project Freedom, the name of the US-led effort to move ships through the channel, would be “paused for a short period of time to see whether or not the Agreement can be finalized and signed”.