Oil prices rose on Monday as markets reacted to ongoing uncertainty over a potential US-Iran agreement and continued disruptions in Middle East shipping routes. The gains come as traders weigh geopolitical risks against supply concerns in the global energy market. Prices remain elevated due to fears of prolonged instability.
Brent crude futures increased by $1.22, or 1.1%, to $109.39 per barrel, recovering from a decline in the previous session. US West Texas Intermediate also rose by $1 to $102.94 per barrel after earlier losses. Analysts said the lack of progress in US-Iran negotiations continued to support prices.
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Market sentiment remains sensitive to developments in the Strait of Hormuz, a key global oil shipping route. The United States has said it will assist vessels stranded in the area, but tensions remain high. Iran has warned US forces against entering the strait, raising concerns about further escalation.
Negotiations between Washington and Tehran continued over the weekend, but no breakthrough has been reached so far. The uncertainty has kept oil prices above the $100 mark, with traders closely monitoring diplomatic signals. Experts say any disruption to Gulf shipping could further tighten global supply.
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Meanwhile, OPEC+ announced plans to raise output targets by 188,000 barrels per day in June, marking a third consecutive monthly increase. However, analysts say the additional supply may remain limited if geopolitical tensions persist. Oil markets are expected to stay volatile amid ongoing uncertainty in the region.