Brent Crude Oil traded above 120 USD/Bbl

Brent crude rose toward $108 a barrel on Monday, recovering from a 2.1% decline in the previous session, as fading hopes for an imminent diplomatic breakthrough between the US and Iran renewed concerns over Middle East supply disruptions. Tehran and Washington remain divided over a potential ceasefire and the reopening of the Strait of Hormuz, with Iran continuing to support a proposal rejected by US President Donald Trump. Nevertheless, Iranian Foreign Minister Abbas Araghchi was expected to meet mediators in New York, while separate discussions between US and Iranian representatives were reportedly planned for Monday or Tuesday. Meanwhile, Saudi Arabia has resumed crude exports through its East-West pipeline after repairs following drone strikes earlier this month. Around 3.5 million barrels a day was flowing through the route, providing an important alternative for Saudi shipments during the conflict.

Brent crude rose above $106 a barrel on Monday, recovering from a 2.1% decline in the previous session as uncertainty surrounding US-Iran diplomacy kept supply risks elevated. Tehran continues to support a proposal that US President Donald Trump has rejected, calling for the lifting of a US naval blockade and oil sanctions as conditions for reopening the Strait of Hormuz. Iranian Foreign Minister Abbas Araghchi said these requirements were longstanding and that Washington would need to make concessions. However, Trump said talks could resume this week. Oil markets have remained volatile as hopes for progress repeatedly give way to renewed uncertainty during the conflict’s eighth month. Regional tensions also persisted, with Saudi-led coalition forces reporting the interception of Houthi drones heading toward Riyadh and a missile aimed at Khamis Mushait, while alerts were issued around Abha and Jazan, where Aramco facilities are located.

Brent crude climbed above $107 per barrel on Monday, recovering losses from the previous session after President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, raising concerns that the restoration of oil flows through the critical waterway could face further delays. Trump also said Tehran had overplayed its hand and expects negotiations to resume this week. Meanwhile, Iran said it is waiting for a definitive US response to its seven-day proposal to reopen the strait and other demands, adding that it will not ease its conditions after Trump rejected Tehran’s latest plan. Elsewhere in the Middle East, tensions remain high as Saudi Arabia intercepted Houthi drones heading toward Riyadh, along with a missile targeting Khamis Mushait in the south. Alerts were also issued in Abha and Jazan, where Aramco operates energy facilities. In the US, Trump is considering a ban on diesel exports as part of efforts to address elevated fuel prices.