US-Iran Tensions Push Oil Prices to $88.7 per Barrel

Oil prices edged up on Monday to $88.7 per barrel as hopes of a breakthrough in US-Iran peace negotiations faded and shipping traffic through the Strait of Hormuz slowed sharply.

The latest rise in crude prices came as diplomatic efforts to ease tensions between Washington and Tehran showed little sign of progress, forcing oil traders to price a larger geopolitical risk premium into crude.

Iranian Foreign Minister Abbas Araqchi said over the weekend that Iran had not yet decided whether to resume talks with the United States, while US President Donald Trump urged Americans to accept slightly higher gasoline prices as the conflict continues.

The sharp reduction in commercial shipping through the Strait of Hormuz is a significant concern for the oil market, with only five commodity vessels passing through the strait on Saturday and no vessels registered as having transited on Sunday, compared to 31 commodity vessels during the previous weekend.