Crude oil declines globally amid anticipation of the fate of the Strait of Hormuz

Global oil prices recorded a significant decline at the beginning of trading on Monday.

The retreat followed US President Donald Trump's announcement of the launch of Operation Freedom Project, which aims to free commercial ships stranded in the Strait of Hormuz and facilitate their safe passage.

Brent crude futures fell 0.59% to settle at $107.53 a barrel.

West Texas Intermediate crude fell 0.82% to $101.10 a barrel.

Despite the current decline, oil prices are still supported above the $100 per barrel level as peace talks between Washington and Tehran have stalled.

Analysts from ANZ Bank point out that each side's adherence to its red lines is impeding progress; while Washington prioritizes the nuclear deal, Tehran ties any solution to the lifting of restrictions on navigation in the Gulf. The developments come in the context of an ongoing dispute since February, which has seen prices jump from pre-war $72 for Brent to their current highs.

OPEC Plus Moves and Production Decisions

Seven countries from the "OPEC Plus" alliance announced their agreement to increase oil production targets by about 188,000 barrels per day during the month of June .

The increase is the third in a row by the coalition in an attempt to counter severe disruptions to global energy supplies caused by the closure of the Strait of Hormuz, through which about 20% of global supplies pass.

Gold and precious metals decline

On the metals front, gold prices witnessed a slight decline as investors awaited the U.S.-Iran negotiations and continued inflation fears. Spot gold fell 0.55% to $4,588.45 an ounce.

Silver: up 0.1% to $75.38 an ounce.

Platinum: up 0.2% to $1991.85.

Palladium: down 0.3% to settle at $1519.66.

Analysts believe that oil staying above high levels could push central banks to keep interest rates high, increasing pressure on gold as a non-yielding asset.