Brent Gives Up Gains on US-Iran Peace Hopes

Brent held near $89 per barrel on Tuesday, hovering around five-week highs as US attacks on Iran entered a tenth consecutive day, while Tehran continued retaliatory strikes against neighboring countries. Tensions intensified after President Donald Trump said Iran had been warned that it would be held responsible for the deaths of three US service members. Iran-backed Houthi militants also announced a maritime embargo against Saudi Arabia, raising concerns over energy shipments through the Red Sea. Meanwhile, Iran said mediators had put forward proposals to help ease tensions with the US after several days of fighting, while reports pointed to a possible 10-day ceasefire. Vessel traffic through the Strait of Hormuz declined sharply this week following Iranian attacks on ships over the weekend, tightening the global supply outlook and continuing to support oil prices.

Brent rose to a five-week high of around $89 per barrel on Monday after a volatile session in which prices swung between gains and losses. The rally gathered pace after US President Trump warned that Iran would be held responsible for the deaths of three US service members, while Yemen's Houthi militants announced a maritime embargo targeting Saudi Arabia, heightening concerns over Red Sea energy shipments. Supply risks also remained elevated following recent attacks on oil tankers and energy facilities in Kuwait. Meanwhile, Iran said mediators had presented proposals aimed at easing tensions with the US after several days of hostilities. The conflict has seen the US carry out airstrikes on Iran for nine consecutive nights, while Iran has retaliated with missile attacks on US allies in the Middle East. Earlier in the session, an Iranian Foreign Ministry spokesman said negotiations with the US could resume, provided they align with Tehran's national interests.

Brent crude oil steadied around $88 per barrel on Monday, hovering at a five-week high, after swinging sharply between gains and losses as traders weighed escalating Middle East tensions against renewed diplomatic efforts. Yemen's Iran-backed Houthi rebels announced a ban on maritime traffic from Saudi Arabia, raising concerns over Red Sea energy shipments, while recent attacks on oil tankers and facilities in Kuwait kept supply risks elevated. At the same time, reports suggested mediators had proposed a 10-day pause in hostilities between the US and Iran to revive their fragile interim peace agreement. Iran also confirmed it had received diplomatic proposals aimed at easing the conflict. Still, shipping through the Strait of Hormuz remained severely disrupted after fresh attacks on commercial vessels. Beyond the Middle East, supply concerns intensified after drone strikes again halted oil loading at Russia's Caspian Pipeline Consortium terminal on the Black Sea.