Oil treads water as US-Iran peace talks stall, Hormuz shipping slows

Oil prices remained relatively stable on Monday as trade began, with tanker traffic through the Strait of Hormuz slowing due to the ongoing lack of a peace agreement between the United States and Iran. Brent crude futures rose 20 cents, or 0.2%, to $88.72 per barrel, while West Texas Intermediate crude futures fell five cents to $82.35 per barrel.

Both contracts had risen more than five percent the previous week following attacks on tankers and refineries. Iranian Foreign Minister Abbas Araqchi stated that Iran had not decided to resume talks with the US, while US President Donald Trump called for Americans to accept slightly higher gasoline prices during the conflict. The current situation remains unchanged, with both sides remaining resolute and the market deliberating the impact of potential supply restrictions against the possibility of alternative routes and informal trade channels.

Tony Sycamore, an IG market analyst, noted in a report that shipping activity through the Strait of Hormuz had decreased over the weekend following the attacks, with only five cargo vessels passing through on Saturday, compared to 31 the previous weekend. The United Arab Emirates accused Iran of attacking a third ADNOC-operated vessel in the strait on Friday, following two other incidents involving ADNOC vessels on Thursday.