Oil Prices Steady Amid Ongoing Middle East Tensions

Oil prices remain steady following last week's gains, despite ongoing tensions in the Middle East. The Strait of Hormuz saw slowed tanker traffic over the weekend, with no signs of a peace deal between the US and Iran. Brent crude futures climbed 20 cents to $88.72 a barrel, while U.S. West Texas Intermediate crude futures slipped 5 cents to $82.35 a barrel.

Market analysts are weighing the risks of tighter supply against workarounds and informal channels. IG market analyst Tony Sycamore noted that both sides remain firmly dug in, with the market left to consider the status quo.

Priyanka Sachdeva from Phillip Nova warned that further upside may be limited unless clear evidence emerges of new attacks causing substantial damage to tankers or oil infrastructure in the strait.