Crude Oil Edges Lower As Trump’s ‘Project Freedom’ Kicks In, But Iran's Attacks In Hormuz Raise Concerns

International crude oil prices on Tuesday eased marginally after posting a steep rise during Monday’s trade.

Global benchmark Brent Crude was hovering around $113 per barrel during Asian trading hours. The level is about 0.8 percent lower than the previous day’s prices.

WTI crude, on the other hand, shed close to 2 percent but remained above the $100 per barrel mark.

The respite in oil prices on Tuesday came amid indications that the United States Navy may ease the blockade of the Strait of Hormuz for increased supply from the Gulf region.

Danish shipping giant Maersk said that one of its US-flagged vessels was able to safely exit the Strait under the protection of US military escorts.

Despite the marginal ease in prices, crude oil is over 70 percent higher than its pre-war levels.

Crude oil prices had surged over 5 percent on Monday after hostilities in the Gulf region increased again.

On the domestic commodities exchange platform MCX, spot crude was trading over 4 percent higher at around Rs 10,104.00.

The May 18 futures contract of crude oil was marginally lower by 0.88 percent at Rs 9,972.00.

The United Arab Emirates, which recently exited the consortium of oil-exporting nations, alleged that its biggest oil storage hub, Fujairah Oil Industry Zone, has been hit by Iranian drones.

The UAE said it was the first such attack on its energy infrastructure since the announcement of a ceasefire between the United States and Iran on April 6.

According to reports, vessels in the Strait of Hormuz have also been attacked by Iran after United States President Donald Trump announced ‘Project Freedom’ to help stranded ships exit the waterway.

Iran had warned the United States that any effort to move traffic in the Strait would be considered a violation of the ceasefire.