Oil prices fall over $2 after Trump pauses Strait opening for possible deal

MELBOURNE - U.S. oil futures fell on Wednesday morning by over $2 after U.S. President Donald Trump said an operation to reopen the Strait of Hormuz will be paused for a short period to see whether an agreement can be finalised and signed.

U.S West Texas Intermediate was down $2.23, or 2.18%, to $100.04 per barrel as of 2326 GMT.

Trump said on Tuesday while the operation to reopen the Strait of Hormuz will be paused, the blockade will remain in force.

WTI closed down 3.9% on Tuesday after the ceasefire held despite reported exchanges of fire, while Brent fell 4% to close at $109.87.

U.S. crude oil inventories fell for the third straight week, while gasoline and distillate stocks also declined, market sources said, citing American Petroleum Institute figures on Tuesday.

Crude stocks fell by 8.1 million barrels in the week ended May 1, the sources said on condition of anonymity. Gasoline inventories fell by 6.1 million barrels, while distillate inventories fell by 4.6 million barrels compared to a week earlier, the sources said.

(Reporting by Helen Clark; Editing by Chris Reese)

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This story was originally published May 5, 2026 at 7:58 PM.