Global oil prices saw a small drop on Monday morning after Donald Trump announced a new plan to guide ships through the Strait of Hormuz and OPEC+ confirmed a slight increase in oil production.
At the time of reporting, WTI crude prices fell by 0.65% to $101.30 per barrel, while Brent crude dropped 0.39% to $107.80.
The US President said that a new operation called “Project Freedom” would begin soon. Under this plan, the US will help ships that are stuck in the Strait of Hormuz, a key global oil route. He added that these ships belong to countries not directly involved in the ongoing Middle East conflict.
He also mentioned that talks with Iran have been “very positive,” raising hopes of reducing tensions in the region.
The US military confirmed that the operation will include strong support, with more than 100 aircraft and around 15,000 personnel involved.
This announcement helped ease some of the fears that had pushed oil prices higher last week.
At the same time, OPEC+ said that seven of its member countries will increase oil production by 188,000 barrels per day in June. This is the third straight month of production increase.
However, experts say that actual oil supply is still limited. The ongoing conflict has affected exports from major producers like Saudi Arabia, Iraq, and Kuwait. The UAE, which recently decided to leave OPEC+, is also facing production issues due to the situation.
Even if shipping routes reopen, it may take several months for oil supply to return to normal levels.
For now, markets are reacting positively to hopes of improved shipping and possible diplomatic progress. But a full recovery in oil supply will depend on a long-term solution to the conflict.
