-- Brent crude futures retreated for a second day on Wednesday following President Trump's surprise announcement of a pause in Hormuz naval escorts to favor peace negotiations.
The Brent futures contract fell 1.5% to $108.21 per barrel. Murban closed at $105.97 on May 5 and was not trading as of the time of publishing this oil price update.
The market sentiment shifted after Trump unexpectedly announced a brief suspension of Project Freedom.
Trump cited significant progress toward a settlement with Tehran, but offered few specific details, even as he confirmed the US Navy would maintain its blockade of Iranian ports.
While Tehran has yet to respond officially, ANZ analysts noted that crude gave up recent gains as the regional ceasefire appeared to hold despite the diplomatic tension.
Despite the diplomatic opening, the Strait of Hormuz remains effectively obstructed.
ANZ highlighted that Iran has implemented a restrictive new transit protocol requiring official email approval for all vessels.
With global stockpiles under increasing pressure, investors are now focused on the upcoming EIA inventory report to gauge the severity of the ongoing supply drain.