Oil prices fall over US$2 after Trump pauses Strait of Hormuz opening for possible deal
US President Donald Trump said on Tuesday that while the operation to reopen the Strait of Hormuz will be paused, the blockade will remain in force.
A drone view of a pump jack and drilling rig south of Midland, Texas, US Jun 11, 2025. (File photo: Reuters/Eli Hartman)
MELBOURNE: US oil futures fell on Wednesday morning (May 6) by over US$2 after US President Donald Trump said an operation to reopen the Strait of Hormuz will be paused for a short period to see whether an agreement with Iran can be finalised and signed.
US West Texas Intermediate was down US$2.23, or 2.18 per cent, to US$100.04 per barrel as of 2326 GMT.
Trump said on Tuesday that while the operation to reopen the Strait of Hormuz will be paused, the blockade will remain in force.
WTI closed down 3.9 per cent on Tuesday after the ceasefire held despite reported exchanges of fire, while Brent fell 4 per cent to close at US$109.87.
US crude oil inventories fell for the third straight week, while gasoline and distillate stocks also declined, market sources said, citing American Petroleum Institute figures on Tuesday.
Crude stocks fell by 8.1 million barrels in the week ended May 1, the sources said on condition of anonymity. Gasoline inventories fell by 6.1 million barrels, while distillate inventories fell by 4.6 million barrels compared to a week earlier, the sources said.
