Oil Prices Surge as Iran-US Peace Hopes Ebb
Oil prices continued to rise on Monday, nearing $90 per barrel as hopes for a US-Iran peace deal faltered. The Brent crude futures rose by 1% to $89.40 a barrel and were trading at $89.20 at 0229 GMT. US West Texas Intermediate (WTI) crude futures gained 44 cents to $82.83 a barrel.
The increase in oil prices was largely due to the weak prospects of a diplomatic resolution to the conflict between the two nations. Iranian Foreign Minister Abbas Araqchi stated that Tehran had not yet decided whether to resume talks with the United States. In contrast, US President Donald Trump urged Americans to accept slightly higher gasoline prices while the conflict continues.
The slowdown in tanker traffic through the Strait of Hormuz has added to concerns about supply disruptions. Five commodity vessels transited the strait on Saturday, but no vessels were registered as having crossed on Sunday, according to ship-tracking data from Kpler.