Oil prices started the week on a weaker note after the United States deployed naval escorts to guide commercial tankers through the Strait of Hormuz, easing immediate fears of supply disruption in one of the world’s most critical oil routes.
As at the time of writing, 07:09 a.m. (WAT), Brent crude traded at $107.02 per barrel, down 0.92 per cent, while West Texas Intermediate slipped at 1.09 per cent to $100.08 per barrel, as traders reacted to improved vessel movement and a softer geopolitical risk outlook.
The market downturn followed Washington’s launch of “Project Freedom,” a naval operation aimed at escorting stranded and vulnerable tankers through the Strait of Hormuz after days of disruption had slowed crude flows and driven prices higher.
Oilprice.com reported that the U.S. operation began Monday morning (Middle East time) and is intended to restore safe passage through the Strait, a chokepoint that carries about one-fifth of global seaborne oil trade, making it highly sensitive to any security disruption.
Last week’s rally in crude was driven by fears that prolonged instability in the Gulf could choke exports from major producers including Saudi Arabia, Iraq and Kuwait. The introduction of escorted convoys has now eased some of that immediate pressure, prompting traders to trim risk premiums.
U.S. Central Command confirmed that the mission involves more than 100 aircraft and 15,000 personnel deployed across air and naval support roles to secure shipping lanes. Oilprice.com noted that this scale of intervention has helped stabilise tanker movement and reduce panic-driven buying in the oil market.
Additional pressure came from OPEC+, which confirmed a production increase of 188,000 barrels per day for June across seven member countries. While modest, the move added to expectations of slightly improved supply availability in the weeks ahead.
For now, the market reaction reflects improved confidence in short-term supply security rather than a full recovery in global flows. Oilprice.com indicated that until Gulf exports normalise and shipping conditions stabilise, crude prices are likely to remain sensitive to any renewed disruption in the Strait of Hormuz.