Oil prices steadied as traders questioned the workability of President Donald Trump's plan to guide neutral ships through the Strait of Hormuz, following a reported tanker attack in the waterway.
Brent crude was little changed above $108 a barrel, while West Texas Intermediate was near $102, after falling 2.4% at the open.
The US move, starting Monday, aims to enable vessels stranded by the war with Iran to pass through the waterway, according to Trump.
A tanker was reportedly hit by projectiles 78 nautical miles north of Fujairah, United Arab Emirates, on Sunday, with the crew safe.
US Central Command said it would provide military support, including guided-missile destroyers, aircraft, and drones, although the plan doesn't involve Navy escorts.
Analysts say 'Trump fatigue' is setting in, with the market not taking the plan seriously.
Crude prices have surged this year, hitting the highest level since 2022, due to the conflict upending markets and threatening slower economic growth and higher inflation.
