Investors showed skepticism Sunday following President Donald Trump’s announcement of a new plan to partially reopen the Strait of Hormuz.
The president stated the U.S. will work to “free” neutral shipping stranded in the Persian Gulf since the conflict with Iran began.
Oil prices fell in early trading as markets weighed the feasibility of Trump’s proposal.
U.S. stock futures rose modestly, reflecting cautious optimism about potential de-escalation in the region.
The Strait of Hormuz is a critical chokepoint for global oil shipments, handling about 20% of the world’s petroleum.
Analysts questioned how the plan would be implemented without triggering further confrontation with Iran.
Details on the timeline and specific measures remain unclear, adding to market uncertainty.
The announcement comes amid ongoing tensions that have disrupted shipping lanes for weeks.
Investors are watching for any concrete steps that could stabilize energy markets.
