Crude oil prices ticked up on Monday in response to renewed instability in the Middle East. Following a recent wave of retaliatory strikes, the United States and Iran have agreed to a temporary ceasefire and will resume diplomatic talks this week, according to market sources.
On the NYMEX in New York, West Texas Intermediate (WTI) for August delivery rose by 0.75%, trading at $69.75 per barrel. Meanwhile, Brent crude on the ICE platform gained 0.28% to reach $72.19 a barrel, hovering below an earlier session peak of 1.9% triggered just after the opening bell.
According to a report by Axios citing US officials, Washington and Tehran have agreed to halt mutual attacks and schedule a high-stakes meeting on Tuesday in Doha, Qatar, to defuse the standoff in the Strait of Hormuz. A senior US official confirmed that all „kinetic activity” has been paused, allowing commercial vessels to navigate freely while technical discussions take place. Interestingly, the Tuesday session was initially slated to occur in Switzerland to discuss Iran’s nuclear program, but the recent escalation forced a swift change of venue and agenda.
The diplomatic push follows heavy warnings from US President Donald Trump over the weekend. Writing on Truth Social, Trump accused Iran of repeatedly violating the ceasefire agreement and announced that US aircraft had targeted Iranian missile warehouses, drone sites, and coastal radar stations. He warned Tehran that continued aggression could lead to full-scale military action resulting in the end of the Islamic Republic. The US military confirmed that these strikes were direct retaliation for Iranian attacks on commercial shipping, including a Panama-flagged tanker. Trump labeled the maritime disruptions a „foolish” breach of a 60-day truce under which Iran promised safe passage for ships in exchange for the lifting of the US blockade on its ports. Conversely, the Islamic Revolutionary Guard Corps had insisted that vessels use only Iran-designated shipping lanes.
Market analysts suggest that geopolitical uncertainty will keep energy investors on the sidelines for now. Haris Khurshid, Chief Investment Officer at Karobaar Capital Lp, noted that traders are likely to mute both buying and selling until a fundamental shift occurs in the Middle East. Although transit through the Strait of Hormuz remains restricted, limited shipping resumed over the weekend, including the passage of four oil tankers. Global insurers and shipowners are closely watching the durability of this peace deal, though analysts point out that shipping volumes remain higher now than during the peak of the US-Iran conflict.
