Oil Eases After 2026 Peak as Trump’s Hormuz Plan Begins Rollout

By Staff, Agencies

Oil prices slipped on Tuesday after sharp gains earlier in the week, as renewed attacks in the Gulf renewed concerns that the fragile US–Iran ceasefire could break down.

Brent crude fell 1.4% to $112.9 a barrel after a 5.8% jump on Monday to $114.4, its highest close of 2026, while West Texas Intermediate [WTI] dropped 2% to $104.2 following a 4.39% rise to $106.42.

US President Donald Trump’s plan to secure shipping through the Strait of Hormuz came amid renewed Iranian attacks in the Gulf, including on a major United Arab Emirates oil port, with Deutsche Bank noting both sides are seeking to “exert influence” over the key waterway.

“Oil markets also moved to price rising risks of persistent disruption,” the analysts added.

They noted that Brent futures contracts for delivery of physical crude in 6 months’ time posted their largest daily increase since March 2022 on Monday to reach $91.99 a barrel.

Brent crude, the global benchmark, slipped 1.05% to $113.24, while US fuel costs surged, with average gasoline prices rising to $4.46 a gallon from $2.98 before the war, according to AAA.

US gasoline prices could climb to $5 a gallon if the Strait of Hormuz stays closed into next month, nearing the June 2022 record, as the waterway—normally carrying about a fifth of global oil and gas—remains largely shut.

Despite some rerouting by producers like Saudi Arabia and the UAE, an estimated 10–12 million barrels per day are still blocked, tightening global supply.

Trump’s “Project Freedom” aims to escort tankers through the strait, but traffic remains minimal, with just four ships crossing compared to over 120 daily before the war.

Renewed clashes, including attacks on vessels and a UAE oil port, have further strained the fragile US-Iran ceasefire and deepened a global energy crisis pushing fuel costs higher worldwide.