Oil prices fell sharply after President Trump announced that the United States would pause a naval mission escorting ships through the Strait of Hormuz, citing 'great progress' toward a potential deal with Iran. The decision reversed an operation launched just days earlier that had heightened tensions and driven energy prices higher amid fears of wider disruption.

The naval escorts were introduced after Iran effectively blocked transit through the critical shipping route following attacks by the United States and Israel in late February. A cease-fire in early April did little to stabilize the situation, with both sides asserting control over the strait and thousands of ships and seafarers remaining stranded in dangerous conditions.

Trump said the pause came at the request of Pakistan and other unnamed countries involved in mediation efforts, though he did not provide details about the reported progress in negotiations. Markets reacted positively to the announcement, with global oil benchmarks dropping about 2 percent as investors expressed cautious optimism that a diplomatic breakthrough could ease supply concerns.