Global oil prices traded on a subdued note on Monday morning after US president Donald Trump said that the US will guide stranded ships out of Strait of Hormuz.
At 7:45 AM, the July contract of Brent on the Intercontinental Exchange was trading at $108.04, lower by 0.12% from its previous close while the June contract of West Texas Intermediate on the NYMEX was down 0.28% at $101.65 a barrel.
However, with no concrete peace deal in sight, the fall in prices was limited.
“Countries from all over the World, almost all of which are not involved in the Middle Eastern dispute going on so visibly, and violently, for all to see, have asked the United States if we could help free up their Ships, which are locked up in the Strait of Hormuz, on something which they have absolutely nothing to do with They are merely neutral and innocent bystanders! For the good of Iran, the Middle East, and the United States, we have told these Countries that we will guide their Ships safely out of these restricted Waterways, so that they can freely and ably get on with their business,” Trump wrote in a post on Truth Social on Sunday.
Naming the initiative as ” he said that the process will begin Monday morning, West Asia time.
Blockade impact
The has been largely under a blockade first implemented by Iran in retaliation to initial attacks by the US and Israel on the country, killing of its erstwhile supreme leader Ayatollah Ali Khamenei and then by the naval blockade announced by the US against the Iran announced last month, affected about one-fifth of the global oil and gas supplies.
India has also been affected by the disruption of trade through the Strait of Hormuz. On Saturday, a Marshall Islands-flagged LPG carrier, MT , carrying 46,313 MT of liquefied petroleum gas to India, has safely crossed the Strait of Hormuz, and is expected to arrive at Visakhapatnam on 13 May 2026.
A petroleum ministry statement on Sunday said that the ships has 20 crew members onboard including 18 Indians.
Diplomatic signals
In another social media post Trump on Saturday said that he would review a new proposal from Iran, however, he added that he couldn’t imagine that it would be acceptable.
“I will soon be reviewing the plan that Iran has just sent to us, but can’t imagine that it would be acceptable in that they have not yet paid a big enough price for what they have done to Humanity, and the World, over the last 47 years…” – President Donald J. Trump
Further, the Iranian media on Sunday said that Tehran has received a US response to its latest peace proposal. Citing the Iranian foreign ministry spokesperson, Iran’s Tasnim news agency said that the country response has been delivered via Pakistan and is being reviewed.
Opec+ move
Further, in a key development for the , the Organization of Petroleum Exporting Countries (Opec) and its allies—known as Opec+— on Sunday agreed to a modest crude oil output increase of about 188,000 barrels a day for June, as the blockade of the crucial Strait of Hormuz continues, disrupting global energy supplies.
As Opec+ countries, including Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman, have committed to increase their output, the announcement is largely symbolic as global supplies remain affected due to the blockade of the crucial energy pathway Strait of Hormuz by both Iran and the US.