By: Economy Middle east

Oil prices stabilized during Asian trading Monday following U.S. President Donald Trump’s announcement that America will lead efforts to escort stranded vessels through the Strait of Hormuz.

Crude benchmarks faced downward pressure after OPEC and allies voted to raise production quotas amid mounting supply disruptions from the U.S.-Israel-Iran conflict, though losses remained contained as a U.S.-Iran peace agreement stays remote. Ukrainian drone strikes on Russian ports and energy facilities further heightened global supply disruption fears.

Brent oil futures for July delivery edged up 0.04 percent to $108.32 per barrel by 9:02 UAE time, while West Texas Intermediate crude futures slipped 0.26 percent to $101.65 per barrel.

Trump pledges U.S. convoy support for Hormuz shipping

Trump stated Sunday that from Monday, the U.S. would initiate operations to guide ships trapped in the Strait of Hormuz, targeting aid for neutral nations caught in the U.S.-Israel conflict with Iran.

He offered scant operational specifics but noted his team is holding “very positive discussions” with Iran.

U.S. Central Command detailed involvement of destroyers, over 100 aircraft across land and sea bases, and 15,000 personnel—though direct combat engagement remains unclear.

Iran’s late-February blockade continues disrupting Hormuz traffic, a chokepoint for 20 percent of global oil supply. Tehran demands U.S. naval blockade removal first; Washington insists Iran reopen the strait and accept nuclear terms, cementing the deadlock.

Ukraine drone strikes hit Russian Primorsk port, tankers

Supply worries spread beyond the Middle East after Ukraine’s Sunday drone barrage targeted Russian sites.

Strikes hit Primorsk Baltic Sea port alongside multiple vessels and energy infrastructure, part of Kyiv’s campaign to slash Moscow’s oil revenues and conflict funding.

Separately, OPEC+ announced Sunday a June production hike of 188,000 barrels per day, following the UAE’s May 1 departure from the group.