Oil softens to $107 range after U.S. halts naval escort effort

May 06, 2026 (MLN): Oil prices declined on Wednesday after U.S. President Donald Trump declared a pause in a key naval operation in the Strait of Hormuz, signaling possible progress toward a diplomatic agreement with Iran.

Currently, Brent crude futures are down by $6, or 5.27%, to $107.85 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures are down by $1.92 or 1.88%, to $103.35 per barrel by [9:55 am] PST.

The downturn followed Trump’s statement on Truth Social that the United States would temporarily suspend “Project Freedom,” a military initiative launched just a day earlier to escort commercial ships through the strategically vital waterway, according to CNBC.

He cited encouraging developments in ongoing negotiations with Iran aimed at reaching a final deal.

According to the administration, Iran’s effective closure of the Strait of Hormuz has disrupted global shipping, leaving approximately 23,000 seafarers aboard vessels from 87 countries stranded in the Persian Gulf.

Previously, Oil was at $113 per barrel after The United States said its forces had sunk Iranian vessels in the strategically critical Strait of Hormuz, a key artery for global oil shipments.

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