US-Iran Tensions Push Oil Prices Higher Despite Peace Talks Stall

Oil prices rose on Monday as tensions between the US and Iran remained high. The Brent crude futures contract reached as high as $89.40 per barrel, a 1% increase from Friday's close.

The US-Iran peace talks have stalled, with Iranian Foreign Minister Abbas Araqchi stating that his country had not decided to resume negotiations with the US. Meanwhile, US President Donald Trump urged Americans to accept slightly higher gasoline prices while the conflict continues.

Shipping through the Strait of Hormuz slowed over the weekend, with only five commodity vessels transiting the strait on Saturday, compared to 31 for the prior weekend. The United Arab Emirates accused Iran of attacking a third vessel operated by Abu Dhabi National Oil Company (ADNOC) that was transiting the strait.

Priyanka Sachdeva, head of market insights for Phillip Nova in Singapore, said that oil prices have rebounded almost completely from the lows seen in early August. However, she sees limited upside unless there is clear evidence of renewed aggression in the Strait of Hormuz.