Brent crude futures for July fell $1.52, or 1.38%, to $108.35 per barrel as of 0103 GMT, after dropping 4% in the previous session.

US benchmark West Texas Intermediate futures for June declined $1.50, or ​1.47%, to $100.77, after closing down 3.9% the day before.

On Tuesday, Trump unexpectedly said he would briefly pause an operation to ​help escort ships through the Strait of Hormuz, citing progress toward a comprehensive ⁠agreement with Iran, without giving details on the agreement.

There was no immediate reaction from Tehran, ​where it was very early on Wednesday morning.

Still, Trump said the US navy would continue ​its blockade of Iranian ports.

The Strait of Hormuz, which typically carries cargoes equal to about one-fifth of the world’s oil and natural gas supply, has been most cut off since the US-Israeli war against Iran began ​on February 28.

The supply loss to the global market has pushed prices higher, with ​Brent trading last week at its highest since March 2022.

“We have mutually agreed that, while the Blockade will ‌remain in ⁠full force and effect, Project Freedom … will be paused for a short period of time to see whether or not the Agreement can be finalised and signed,” Trump wrote on social media.

Trump’s announcement came only hours after US Secretary of State Marco Rubio briefed reporters on the effort, announced on Sunday, ​to escort stranded tankers ​through the strait.

On ⁠Monday, the US military said it had destroyed several Iranian small boats, as well as cruise missiles and drones, while guiding two vessels out of ​the Gulf through the strait.

The Strait of Hormuz closure has drawn ​down global ⁠inventories as refineries try to make up the shortfall.

US crude oil inventories fell for a third week, while gasoline and distillate stocks also declined, market sources said on Tuesday, citing American Petroleum Institute figures.

Crude stocks ⁠fell ​by 8.1 million barrels in the week ended May 1, ​the sources said.

Gasoline inventories fell by 6.1 million barrels, while distillate inventories fell by 4.6 million barrels compared to ​a week earlier, the sources said.