Oil Prices Rise as US-Iran Talks Stall, Hormuz Traffic Slows

Oil prices have risen on Monday due to concerns over potential disruptions to global crude supplies. The US-Iran peace talks have stalled, and tanker traffic through the Strait of Hormuz has slowed. This has increased worries about the impact of ongoing tensions on oil transportation and regional energy infrastructure.

Brent crude futures gained as much as 1% to $89.40 per barrel before trading around $89.20, up 72 cents, by 0229 GMT. US West Texas Intermediate (WTI) crude futures also increased, rising 44 cents to $82.83 per barrel.

The uncertainty has reduced market expectations for a lasting diplomatic resolution and contributed to renewed geopolitical risk premiums in crude prices. With diplomatic uncertainty continuing and shipping activity through the Strait of Hormuz slowing, investors are closely watching developments in the region for their potential impact on global oil supplies and prices.