Oil Prices Hold Steady Amid Ongoing Middle East Conflict

Oil prices rose on Monday due to the ongoing stalemate in diplomatic efforts to resolve the Middle East conflict. The lack of progress in negotiations between Iran and the United States led to concerns about potential disruptions to oil supplies through the Strait of Hormuz.

Brent crude futures increased by 1.04% to US$89.44, while US West Texas Intermediate crude futures rose by 0.67% to US$82.95 a barrel. However, analysts believe that prices are unlikely to move significantly higher unless there is a halt in the current flow of crude through the Strait of Hormuz or a closure of the Bab el-Mandeb Strait.

Bjarne Schieldrop at SEB Research said that prices were trading close to US$90 as traders weigh the risk of deeper disruption and shortages against the possibility of a resolution where the Strait of Hormuz is reopened and oil prices fall sharply.