Brent crude futures were up $1.22, or 1.1%, to $109.39 a barrel at 0909 GMT after settling down $2.23 on Friday
Iran renewed attacks on the United Arab Emirates on Tuesday, causing oil loading at the port of Fujairah to be at least partly halted after the third attack in four days. FILE IMAGE: PIXABAY
Oil prices rose 1% on Monday, reversing earlier losses, supported by the absence of a US-Iran peace deal, even as the US said it would help secure safe passage for ships stranded in the Strait of Hormuz.
Brent crude futures were up $1.22, or 1.1%, to $109.39 a barrel at 0909 GMT after settling down $2.23 on Friday. US West Texas Intermediate was up $1, or 1%, at $102.94 a barrel, after a $3.13 loss on Friday.
“The path for prices remains skewed to the upside as long as flows through the Strait remain restricted,” UBS analyst Giovanni Staunovo said.
President Donald Trump said the US would begin efforts to assist ships stranded in the Strait of Hormuz, but prices stayed above $100 a barrel, with no peace deal in sight and shipping through the strategic waterway still constrained.
Iran’s military, in response, warned US forces on Monday not to enter the strait, adding that its forces would “respond harshly” to any threat.
Negotiations between the US and Iran continued over the weekend, with both sides assessing each other’s responses.
Read: OPEC+ set to agree third oil output quota hike since Hormuz closure, sources say
Trump has made securing a nuclear deal with Tehran a priority, but Iran wants to defer nuclear talks until after the war and first lifts rival blockades on Gulf shipping.
Meanwhile, the United Kingdom Maritime Trade Operations agency said on Monday that a tanker had reported being hit by unknown projectiles while transiting near Fujairah in the United Arab Emirates.
On Sunday, the Organisation of the Petroleum Exporting Countries and its allies, known as OPEC+, said it would raise oil output targets by 188,000 barrels per day in June for seven members, marking the third consecutive monthly increase.
The rise matches that agreed for May, minus the share of the United Arab Emirates, which left OPEC on May 1. However, the additional barrels are expected to remain largely on paper as long as the Iran war continues to disrupt Gulf oil supplies through the Strait of Hormuz.
Oil slips after Trump says US will assist ships stranded in Strait of Hormuz
Oil prices eased on Monday after President Donald Trump said the United States would begin an effort to assist ships stranded in the Strait of Hormuz, but the lack of a US-Iran peace deal kept the market supported above $100.
Brent crude futures fell 6 cents, or 0.1%, to $108.11 a barrel by 0400 GMT after settling down $2.23 on Friday. US West Texas Intermediate was at $101.50 a barrel, down 44 cents, or 0.4%, following a $3.13 loss on Friday.
“The broader market remains tightly supported by persistent supply disruptions and geopolitical uncertainty,” said Priyanka Sachdeva, analyst at Phillip Nova.
“Unless there is a clear and sustained resolution that restores normal flows through the Strait of Hormuz, oil prices are likely to remain elevated, with risks still tilted toward further upside”.
Trump said on Sunday that the US will guide ships safely out of the Strait of Hormuz, but oil prices stayed above $100 a barrel, with no peace deal in sight and shipping through the strategic waterway still constrained.
Negotiations between the US and Iran continued over the weekend, with the countries assessing responses from each other.
Trump has made securing a nuclear deal with Tehran a priority, but Iran wants to defer nuclear talks until after the war and first lifts rival blockades on Gulf shipping.
On Sunday, the Organisation of the Petroleum Exporting Countries and its allies, or OPEC+, said they will raise oil output targets by 188,000 barrels per day in June for seven members, the third consecutive monthly rise.
The increase is the same as that agreed for May minus the share of the United Arab Emirates, which left OPEC on May 1. However, the higher volume will remain largely on paper as long as the Iran war continues to disrupt Gulf oil supplies through the Strait of Hormuz.
