Crude oil prices experienced a significant decline Wednesday morning, dropping more than $2 per barrel after President Donald Trump announced a temporary halt to operations aimed at reopening the Strait of Hormuz.
West Texas Intermediate crude futures decreased by $2.23, representing a 2.18% decline to $100.04 per barrel as of 2326 GMT.
The president indicated Tuesday that while the mission to reopen the strategic waterway would be temporarily suspended to explore potential diplomatic solutions, the current blockade would continue.
Tuesday’s trading session saw WTI close with a 3.9% loss following reports that a ceasefire remained intact despite some reported gunfire exchanges. Meanwhile, Brent crude experienced a 4% drop, finishing at $109.87.
According to market sources citing American Petroleum Institute data released Tuesday, U.S. crude oil reserves decreased for the third consecutive week, with gasoline and distillate supplies also showing declines.
Industry sources, speaking anonymously, reported that crude stockpiles dropped by 8.1 million barrels during the week ending May 1. Gasoline reserves fell by 6.1 million barrels, while distillate inventories declined by 4.6 million barrels compared to the previous week.
