Oil prices fell Monday in extended trading after President Donald Trump said he was considering seizing control of the Strait of Hormuz, the most important chokepoint in world for the crude market.
U.S. crude oil was down 6.19% to $85.27 per barrel at 3:37 p.m. ET. Global benchmark Brent traded 4.6% lower at $88.43 per barrel.
Trump told CBS News in a phone conversation that ships are moving through the Strait. The president said he is “thinking about taking it over.” He also indicated he thought the war would soon be over.
Trump is also considering reducing oil sanctions on Russia to help ease crude prices, three sources familiar with the matter told Reuters.
West Texas Intermediate crude futures had closed 4.26% higher at $94.77. WTI surged as high as $119.48 overnight as Gulf Arab nations cut production because ships were not transiting the Strait due to threats from Iran.
Only a handful of commercial vessels are moving through the Strait, said Matt Smith, oil analyst at energy consulting firm Kpler.