Oil Prices Swing on US-Iran Deadlock and Strait of Hormuz Uncertainty

Crude oil prices swung wildly on Monday as investors grappled with the stalemate in US-Iran talks, weighing the risk of supply disruptions against the absence of fresh large-scale disruptions.

Brent crude oil initially rose by up to 1% to $89.40 per barrel before reversing course and falling 24 cents to $89.28 by 0620 GMT.

U.S. West Texas Intermediate crude also weakened, dropping 67 cents to $81.74 per barrel.

The volatile session followed a strong week for crude oil, with both major benchmarks gaining more than 5% as renewed tensions in the Middle East restored a geopolitical premium to oil prices.

Investors have become increasingly concerned that efforts to reach an agreement between Washington and Tehran may not produce an immediate resolution to the conflict, increasing uncertainty around the Strait of Hormuz.