Oil prices remained mostly steady on Monday after gaining more than 5% last week. Traders are watching rising tensions between the United States and Iran for signs of further supply disruptions. Brent crude futures were unchanged at $88.55 per barrel by 0128 GMT. Meanwhile, US West Texas Intermediate crude futures fell 14 cents to $82.26 a barrel.
Both benchmarks posted strong gains last week. The increase followed attacks involving tankers operated by Abu Dhabi National Oil Company in the Strait of Hormuz.
A separate attack also targeted a Saudi Aramco refinery. The incidents increased concerns about energy supplies moving through the strategically important waterway.
US-Iran Peace Hopes Fade
Market sentiment has also shifted as hopes for a lasting US-Iran agreement appear increasingly uncertain. Iranian Foreign Minister Abbas Araqchi said over the weekend that Tehran had not decided to resume negotiations with Washington.
Meanwhile, US President Donald Trump urged Americans to accept somewhat higher gasoline prices while the conflict continues.
“Oil prices have now rebounded almost completely from the lows seen in early August, as hopes for a more permanent resolution between the US and Iran have faded and geopolitical risk premiums have returned to the market,” said Priyanka Sachdeva, head of market insights for Phillip Nova in Singapore.
She added, “However, I see limited upside from here unless we get clear evidence of renewed aggression in the Strait of Hormuz, particularly material damage to tankers or oil infrastructure.”
Shipping Through Hormuz Slows
Shipping activity through the Strait of Hormuz also slowed over the weekend. The decline followed several attacks involving tankers in the region.
Kpler shipping data showed that five commodity vessels passed through the strait on Saturday. No commodity vessels were recorded crossing on Sunday.
By comparison, 31 vessels crossed the waterway during the previous weekend. The sharp decline highlights growing concerns among shipping operators over security risks.
The Strait of Hormuz remains one of the world’s most important energy routes. Any prolonged disruption could affect crude supplies and increase pressure on international oil prices.
UAE Accuses Iran of Another Attack
The United Arab Emirates accused Iran of attacking another ADNOC-operated vessel on Friday. The vessel was reportedly travelling through the Strait of Hormuz when the incident occurred.
The UAE had already blamed Iran for two other incidents involving ADNOC vessels. Those incidents reportedly occurred on Thursday evening.
The latest developments have added to concerns about the safety of commercial shipping in the region. Traders are now watching the strait closely for any further attacks or disruptions.
For now, oil prices remain supported by geopolitical risks. However, analysts say sustained gains may depend on whether tensions escalate further or directly threaten tankers and oil infrastructure.
