US-Iran war: Oil prices remained largely steady in early Asian trade on Monday as tanker movements through the Strait of Hormuz weakened over the weekend, while no agreement has emerged between the United States and Iran to bring an end to the Middle East conflict.
Brent crude futures rose 20 cents, or 0.2%, to $88.72 a barrel. Meanwhile, US West Texas Intermediate (WTI) crude futures edged down 5 cents to $82.35 per barrel.
Both benchmarks posted gains of more than 5% last week after tankers operated by Abu Dhabi National Oil Company came under attack in the Strait of Hormuz, while a Saudi Aramco refinery was also targeted.
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Lebanon experienced its deadliest day of clashes in months on Sunday as Israel targeted Iran-backed Hezbollah, while broader diplomatic efforts between Tehran and Washington appeared to have stalled.
Several more vessels came under attack in the Strait of Hormuz late last week, including ships linked to Abu Dhabi National Oil Co. Despite the disruptions, Middle Eastern oil producers are continuing to move substantial volumes of crude through the Persian Gulf. Shipments are exceeding market expectations of around 4 million barrels a day, according to people familiar with the flows.
Oil prices have surged more than 40% this year as the conflict between Washington and Tehran enters its sixth month. US President Donald Trump has indicated that his administration intends to severely pressure Iran’s economy and has said he is not concerned about whether the war concludes before the November midterm elections. Treasury Secretary Scott Bessent said additional sanctions could be announced as early as this week.
At the same time, Iran and Oman appeared to be moving closer to an agreement on the management of the Strait of Hormuz. However, the US is not involved in those discussions and is unlikely to support any arrangement that fails to guarantee unrestricted passage through the waterway, which previously carried about one-fifth of the world’s daily oil and liquefied natural gas supplies.
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