Brent Surges 2.61% as US-Iran Talks Stall Amid Geopolitical Premium
Oil prices rose on Monday as peace talks between the US and Iran remained at a stalemate. The Brent benchmark, which tracks two-thirds of the world's oil, was up 2.61% to $107.04 a barrel, while West Texas Intermediate, which tracks US crude, gained 1.96% to $94.22 a barrel.
The increase comes after both benchmarks closed more than 2% lower last week. Daniel Richards, senior economist at Emirates NBD, noted that Brent has rebounded above $106 a barrel after a brief relief rally on Friday failed to stick.
US President Donald Trump rejected Iran's seven-day plan to reopen the Strait of Hormuz, leaving talks unresolved and adding a geopolitical premium to crude prices. However, Mr. Trump signaled he remains open to making a deal, saying 'They want to make a deal, but it is not the deal that I want to make.' He added, 'I am always thinking about' resuming strikes against Iran.
Iranian Foreign Minister Abbas Araghchi stated that Tehran is prepared for renewed military confrontation with the US while remaining open to diplomacy. 'We are ready for diplomacy. We are ready for war at the same time,' he said.