Brent crude prices eased on Monday after briefly climbing above $90 per barrel. The reversal followed comments from Iran suggesting that negotiations with the United States could still take place.
An Iranian Foreign Ministry spokesperson said talks may be pursued if they align with the country’s national interests.
Brent Oil Retreats From Five-Week High
Brent crude futures, the global benchmark for oil prices, rose 0.1% to $88.22 per barrel by 08:18 ET.
Earlier in the session, Brent reached $90.75 per barrel, its highest level in more than five weeks.
Meanwhile, US West Texas Intermediate crude futures fell 0.4% to $82.13 per barrel.
US-Iran Strikes Raise Supply Concerns
US forces targeted Iran for a ninth consecutive day on Monday. The continuing military action raised doubts over when the Strait of Hormuz could reopen fully to commercial shipping.
The latest attacks followed Iranian reports that two oil tankers had been struck and left immobilized.
Iran’s Islamic Revolutionary Guard Corps also said it had attacked US aircraft at an airport in Jordan. The group reported additional strikes against American military equipment and assets in Kuwait and Syria.
Bahrain’s Interior Ministry also confirmed that warning sirens sounded on Monday morning.
Strait of Hormuz Remains a Key Market Risk
The United States and Iran have entered another cycle of retaliatory strikes, only weeks after agreeing to a fragile ceasefire framework.
Oil traders are closely watching whether the conflict will intensify and further restrict energy shipments through the Strait of Hormuz.
The waterway, located near Iran’s southern coast, is one of the world’s most important routes for crude oil and refined fuel exports.
Any prolonged disruption could tighten global supplies and place renewed upward pressure on oil prices.
Shipping Activity Falls Sharply
ANZ analysts said the expected recovery in commercial shipping had stalled.
According to the bank, daily transit volumes through the Strait of Hormuz have fallen to single-digit levels.
Although US oil production has increased, ANZ said the additional supply has not significantly changed the wider market balance.
Global inventories are also continuing to decline. As a result, crude oil and refined-product markets remain tight.
Brent Oil Remains Highly Volatile
Brent crude has experienced significant volatility since the joint US-Israeli assault on Iran began in late February.
Prices climbed above $110 per barrel shortly after the conflict started.
However, Brent later returned toward its pre-war level of around $70 per barrel after the two sides reached a ceasefire agreement in June.
Renewed military strikes have since pushed geopolitical risk back into oil prices.
Diplomatic Hopes Limit the Oil Rally
Despite the latest escalation, investors continue to monitor the possibility of renewed negotiations.
US Secretary of State Marco Rubio said Washington remained open to discussions with Iran. He added that the United States would welcome another opportunity to hold talks.
Iranian Foreign Minister Abbas Araghchi also said negotiations could begin after Iran achieves certain strategic objectives.
In addition, Iran’s Foreign Ministry said mediators had presented proposals aimed at preventing the conflict from intensifying further.
These diplomatic signals helped oil prices retreat from their earlier highs, although uncertainty surrounding the Strait of Hormuz continues to support the market.
