UNITED STATES: Oil prices remained near recent highs on Monday as concerns over supply disruptions through the Strait of Hormuz persisted and prospects for a lasting US-Iran peace agreement weakened. Brent crude was unchanged at $88.55 a barrel, while US West Texas Intermediate slipped 14 cents to $82.26. Both benchmarks gained more than 5% last week following reported attacks on tankers operated by Abu Dhabi National Oil Company and an attack on a Saudi Aramco refinery.
Iranian Foreign Minister Abbas Araqchi said over the weekend that Tehran had not decided to resume talks with Washington, while US President Donald Trump urged Americans to accept slightly higher gasoline prices as the conflict continues. Analysts said the fading prospects for a diplomatic resolution have restored a geopolitical risk premium to oil markets, although further price increases would likely require renewed attacks causing significant damage to tankers or oil infrastructure.
Hormuz Traffic Falls Sharply After Tanker Attacks
Shipping through the Strait of Hormuz slowed sharply over the weekend following reported attacks on tankers. Kpler data showed that only five commodity vessels transited the strait on Saturday, while no vessels were registered on Sunday, compared with 31 vessels during the previous weekend.
The United Arab Emirates accused Iran of attacking a third ADNOC-operated vessel transiting the strait on Friday, according to the Emirati state news agency WAM. The UAE had previously blamed Iran for two other incidents involving ADNOC vessels in the strait on Thursday evening. Iran has said the United States must meet its conditions concerning the strait before shipping can resume, adding further uncertainty to the movement of oil and other commodities through one of the world’s key energy chokepoints.