US-Iran Tensions Send Oil Prices Higher as Tanker Traffic Slows

Oil prices rose on Monday as concerns about geopolitical risk grew following stalling US-Iran peace talks and slower tanker traffic through the Strait of Hormuz.

Brent crude futures increased by one percent to $89.40 per barrel, while US West Texas Intermediate crude futures rose 44 cents to $82.83 a barrel, up from last week's gains triggered by attacks on tankers in the Hormuz strait and a Saudi Aramco refinery.

Priyanka Sachdeva, head of market insights for Phillip Nova in Singapore, noted that oil prices have rebounded almost completely from their August lows as hopes for a US-Iran resolution faded and geopolitical risk premiums returned to the market.