Oil prices slipped on Wednesday after President Donald Trump said the United States would temporarily pause its naval escort operations in the Strait of Hormuz, raising expectations of a possible breakthrough in talks with Iran.

Brent crude futures for July delivery fell 1.21 per cent to $108.54 per barrel, while West Texas Intermediate dropped 1.76 per cent to $100.50 per barrel.

Trump announced on Truth Social that Washington was suspending “Project Freedom,” a naval mission launched just a day earlier to escort commercial shipping through the strategic waterway, citing what he described as progress in negotiations with Tehran toward a final agreement.

The Trump administration said approximately 23,000 seafarers across vessels from 87 countries are currently stranded in the Persian Gulf after Iran effectively shut down the Strait of Hormuz, halting maritime traffic through the key shipping lane.

The situation has left hundreds of ships immobilised, with crews unable to disembark as tensions in the region continue to disrupt global trade flows.