Oil Slips as US Eases Strait of Hormuz Tensions

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After Donald Trump signaled U.S. support for ships in the Strait of Hormuz, the oil slipped into focus on May 4, 2026, easing immediate supply fears while prices held firm.

Oil Slips as Shipping Concerns Ease

At the start of the week, the oil slipped as markets reacted to Washington’s plan to assist vessels stranded in the Strait of Hormuz. Brent crude edged down 0.1% to $108.11 a barrel, while U.S. West Texas Intermediate fell 0.4% to $101.50, extending Friday’s losses.

The announcement offered short-term relief, yet uncertainty surrounding U.S.-Iran negotiations continued to cap downside momentum. “Is calm returning, or just a pause before another surge?” remains the lingering question.

Despite oil slips, prices stayed above $100 as supply disruptions and geopolitical friction persisted. OPEC+ confirmed a 188,000 barrels-per-day output increase for June, marking its third consecutive monthly rise.

However, ongoing constraints in the Gulf may limit the real impact of added supply, leaving markets finely balanced.