Hormuz Tensions Send Oil Prices Soaring Near $89

Oil prices have been relatively stable in early trade on Monday, but concerns over supply disruptions are mounting. The Strait of Hormuz, a crucial global oil transit route, has seen a sharp decline in vessel movements. According to Kpler data, only five commodity vessels crossed the passage on Saturday, while none were recorded on Sunday.

The Strait of Hormuz is a critical chokepoint for global oil supplies, with many major producers relying on it as a key transportation route. Brent Crude oil prices are trading near $89 per barrel, and WTI Crude oil prices are near $83 per barrel, both having seen marginal gains of over 0.2 percent.

The rise in tensions between the US and Iran has led to increased concerns about oil supply disruptions. The memorandum of understanding aimed at ending the war between the two countries is due to expire today, with little indication that either side is prepared to extend it. Iranian Foreign Minister Abbas Araghchi said on Saturday that Tehran had not decided whether to resume negotiations with the US.