Oil prices dropped Tuesday as US Energy Secretary Chris Wright reported ship traffic through the Strait of Hormuz "rising very meaningfully." Brent crude slipped 2% to $91.88 while West Texas fell 3.3% to $88.26. Markets reacted positively to improved transit conditions despite Trump's claim Iran shot down an American helicopter over the strait.

The decline comes after oil prices surged following February's US-Israeli strikes on Iran. Brent reached $126 in April as Tehran shut off flows through the strait, which handles about a fifth of global oil. Recent easing suggests markets believe Trump is closing in on a deal to end hostilities and reopen the critical waterway.

Maritime data shows improved but fragile conditions. More than 60 ships have transited without signaling location, while the International Maritime Organization reports 40 ships attacked and 11 seafarers killed since February. Wright warned full recovery will take "many months" as security concerns persist despite increased traffic.