Oil prices fall as Trump says strait of Hormuz ‘open to all’ if Iran accepts deal | Oil

Oil prices fell and stock markets rose after Donald Trump said the war with Iran would end and the Strait of Hormuz would be “open to everyone” if Tehran reached an agreement with Washington.

“If Iran agrees to deliver what was agreed upon, which is perhaps a big assumption, the already legendary Epic Rage will end and the highly effective Blockade will allow the Strait of Hormuz to be OPEN TO EVERYONE, including Iran,” the US president posted on social media.

But he added that if Iran does not reach an agreement, “the bombing will begin” and “unfortunately it will be at a much higher level and intensity than before.”

This came after the president said he would briefly pause the “Freedom Project” operation that escorts ships through the strait, which carries about a fifth of the world’s oil supply but has been blockaded by Iran since late February, triggering a global energy crisis.

Trump said he halted the operation “for a short time” to reach an agreement with Tehran, but added that the blockade of Iranian ports would continue.

According to state media, the Revolutionary Guard Navy said in a statement on Wednesday that safe passage through the strait will be ensured once the US threats end and new procedures come into force. This was Iran’s first reaction to the US pausing operations to help stranded ships pass through the strait.

Initially, this news sent Brent crude oil prices falling 11 per cent to $97 (£71) per barrel, having risen as much as 6 per cent earlier this week following recent attacks in the Middle East. It fell below $100 for the first time since April 22.

Wholesale gas prices also fell – the UK’s June contract fell 6.3% to 107.8pa – while airline stocks rose as expectations for international travel increased.

The price of crude oil was falling on Wednesday morning and accelerated after a while. report Axios news site reported that the White House believes it is close to agreeing to a one-page memorandum of understanding to end the war with Iran. In the statement, based on four sources, including two US officials, it was stated that the two sides were ready to create a framework for more detailed nuclear negotiations.

However, oil regained its losses later in the day, trading at $101.83 per barrel, down 7.3%, after Iran said it was “America’s wish list.” [and] it is not a fact”.

The Guard’s statement about the strait did not specify what the new procedures entailed and thanked ship owners and captains for following Iranian rules while navigating the waterway.

After Trump said that the US blockade of Iranian ports could last for months and that peace talks were stalled, the oil price reached $126 per barrel last week, reaching its highest level since 2022.

European stock markets rose on Wednesday. Britain’s FTSE 100 index rose 2%, France’s Cac 40 index rose 3% and Germany’s Dax index rose 2.1%.

MSCI’s All Country World Index rose 1.6% to a new record; Similar milestones were achieved for the emerging markets benchmark and the broadest Asia Pacific share index outside Japan, which rose 2.5%.

The rise was led by the 6.6% increase in the South Korean Kospi index, which exceeded the 7,000 mark for the first time. As the Seoul market reopened after a holiday, Samsung Electronics rose 14.8% to a market value of $1 trillion, driven by a boom in artificial intelligence stocks.

The S&P 500 rose almost 1%, setting a new record on Wall Street on Tuesday.

In the bond market, UK long-term gold yields fell slightly after reaching their highest level since 1998 on Tuesday. The 30-year bond yield, the effective interest rate on the UK government’s long-term debt, fell nearly 9 basis points to 5.63%.

Gold, traditionally seen as a safe-haven asset, rose 3% to $4,695 an ounce.

Trump’s latest comments came after French shipping group CMA CGM said one of its ships, the San Antonio, was the target of an attack while passing the Strait of Hormuz.

The company, which caused injuries to the crew and damage to the ship in the attack that occurred on Tuesday, stated that it “follows the situation closely and continues to be fully mobilized together with the crew.”

Susannah Streeter, Wealth Club’s chief investment strategist, said: “The barrage of tensions has eased with relief coming to financial markets amid hopes of an end to hostilities in the Middle East as the Trump administration makes conciliatory moves.

“Relief is beginning to trickle into bond markets as UK gilt yields ease amid hopes that inflation will not get so high if a long-term solution can be negotiated.”