Business & Economy

Oil prices ease as US pauses Project Freedom to seek deal with Iran

Abubakar Ibrahim•2h ago•450 words · 3 min read

Summary

Donald Trump raised hopes for an agreement with Iran to end the war on Wednesday in Asia. 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 fell by 1.7% to $108 (£79.56) a barrel, while US-traded oil fell by 1.6% to $100.60. 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 to cross the Strait of Hormuz, in retaliation against US-Israeli strikes since February 28. 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 April 8 and later extended. Trump said on social media on Tuesday that Project Freedom would be "paused for a short period of time to see whether or not the Agreement can be finalized and signed". He added that "Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran". Trump said the US would continue to block ships transiting to and from Iranian ports.

Charu Chanana from investment firm Saxo said pausing Project Freedom is "a sign that Washington is willing to give diplomacy another chance," but added that it is not a turning point. Chanana said, "The key question for oil traders is whether this leads to real progress in reopening trade through the Strait of Hormuz," and "For now, there is little evidence of that." US Secretary of State Marco Rubio told reporters that the initial US-Israeli offensive in Iran was over, as Washington

Quick Summary

Oil prices have dipped as the US considers a deal with Iran to de-escalate conflict in the Middle East. The pause of Project Freedom - meant to guide ships through the Strait of Hormuz - hints at a possible turning point for global energy.

#oil prices #Iran #Project Freedom #Strait of Hormuz

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