Global crude oil prices declined nearly 3 per cent on Monday, 4 May after US President Donald Trump said Washington would take steps to help clear vessels stranded in the Strait of Hormuz, though the absence of a breakthrough in US-Iran talks kept prices above the $100-per-barrel mark.

Where Prices Settled

International benchmark Brent crude slipped 66 cents, or 0.61 per cent, to $107.51 per barrel. US West Texas Intermediate (WTI) fell a sharper $2.83, or 2.77 per cent, to $99.11 a barrel, briefly dipping below the psychologically significant $100 threshold.

On the domestic front, crude oil futures on the Multi-Commodity Exchange (MCX) were trading at ₹9,621, down ₹44, or 0.45 per cent, from the previous close.

What Trump Said

In a post on Truth Social, Trump said the US would help ensure safe passage for ships through the restricted waterway, enabling them to continue operations without disruption. He noted that several countries — many of them neutral and not directly involved in the conflict — had sought US assistance to free vessels stranded in the Strait of Hormuz. The statement was interpreted by markets as a signal of possible de-escalation in the broader West Asia conflict.

Notably, this marks one of the first direct US commitments to intervene in Hormuz shipping logistics since tensions with Iran escalated, underscoring how critical the waterway — through which roughly 20 per cent of global oil supply transits — has become to energy market stability.

US-Iran Talks: Still No Breakthrough

Despite the price dip, crude remained elevated as no peace agreement has been reached between Washington and Tehran. Negotiations continued over the weekend, with both sides reportedly reviewing each other's latest responses. The US is pushing for a nuclear agreement, while Iran has suggested deferring nuclear discussions until after the conflict ends, alongside a mutual easing of restrictions on Gulf shipping. The divergence in positions means shipping through the Strait of Hormuz remains constrained.

OPEC+ Output Hike Unlikely to Offset Disruptions

The Organisation of the Petroleum Exporting Countries and its allies (OPEC+) announced on Sunday that seven member nations would increase output by 188,000 barrels per day in June, marking the third consecutive monthly hike. However, analysts caution that the additional supply is unlikely to significantly ease market tightness in the near term, given that disruptions linked to the Iran conflict continue to affect oil flows through the Strait of Hormuz.

Equity Markets Shrug Off Oil Jitters

On the equities front, both domestic and global markets showed positive momentum. Benchmark indices Sensex and Nifty were trading approximately 1 per cent higher in the morning session. In Asia, key indices including Japan's Nikkei, Hong Kong's Hang Seng, and South Korea's Kospi rose by up to 4 per cent. The divergence between equity optimism and oil market anxiety reflects how differently traders are pricing geopolitical risk across asset classes.

With US-Iran talks still unresolved and OPEC+ supply additions months away from full effect, crude prices are likely to remain volatile in the sessions ahead.