Oil futures declined late Tuesday after President Donald Trump announced a pause in his administration’s effort to partially reopen the Strait of Hormuz.
The decision aims to buy more time for negotiations to end hostilities with Iran, according to the president.
Crude prices had been fluctuating amid tensions in the region, which is a key passageway for global oil shipments.
The Strait of Hormuz handles about one-fifth of the world’s oil supply, making any disruption significant for energy markets.
Trump’s move signals a shift in approach, as earlier efforts focused on reopening the waterway to stabilize supply.
Analysts noted that the pause could prolong uncertainty around oil shipping routes.
Brent crude also saw declines in response to the announcement, reflecting broader market caution.
The development comes as diplomatic talks between the U.S. and Iran continue behind the scenes.
Market observers are watching for any breakthrough that could reduce geopolitical risks.
Oil prices have been volatile this year, influenced by supply concerns and shifting policy signals.
The pause may provide temporary relief for oil prices but keeps long-term risks in play.
