Oil & Gas

Oil prices slipped slightly during early Asian trading on Monday after President Donald Trump revealed that the United States would begin escorting ships through the Strait of Hormuz, while OPEC+ confirmed a small increase in output. At the time of reporting, WTI crude had fallen 0.65% to $101.30, and Brent crude was down 0.39% at $107.80.

Trump announced on social media that “Project Freedom” would commence Monday morning Middle Eastern time, aiming to help guide stranded vessels safely through the Strait. He noted that the ships involved would come from regions not directly tied to the Middle East conflict. In the same message, he described ongoing talks with Iran as “very positive,” hinting at possible de-escalation. U.S. Central Command added that the mission would include substantial military backing, involving more than 100 aircraft and around 15,000 personnel.

The news appears to have eased some of the geopolitical tensions that drove oil prices higher in the previous week. At the same time, OPEC+ added further downward pressure by confirming a modest supply increase for June, with seven member countries set to boost production targets by a combined 188,000 barrels per day—marking the third straight monthly rise.

Despite these developments, actual output from OPEC+ remains heavily constrained due to disruptions in the Strait of Hormuz, which have significantly reduced exports from key producers such as Saudi Arabia, Iraq, and Kuwait. The United Arab Emirates, which recently signaled its intention to leave the group, is also facing production setbacks. Even if shipping routes are restored, it could take months for supply flows to fully recover, leaving current announcements more relevant to the medium- and long-term outlook than to immediate market conditions.