Oil Gains as Middle East Disruptions Persist

WTI crude oil futures jumped over 2% to $96.5 per barrel on Monday as stalled efforts to restart peace talks over the Iran conflict kept the Strait of Hormuz nearly closed, extending supply disruptions that have shaken global markets. Reports indicate Tehran has proposed reopening the strait through US talks, though tensions remain high. Over the weekend President Trump canceled a planned visit by key envoys to Pakistan, which is mediating discussions, while Iran insisted it will not negotiate under pressure. A ceasefire has largely held since early April, yet mutual shipping blockades have reduced traffic through the strait to almost zero. Trump is set to meet his national security team to address the deadlock. The conflict, now in its ninth week, has pushed energy prices higher and caused shortages in key markets, with the International Energy Agency warning of an unprecedented supply shock and rising risks of demand slowdown.

WTI crude futures climbed above $96 per barrel in volatile trading on Monday, as the Strait of Hormuz remained effectively closed amid stalled US–Iran peace negotiations. US President Donald Trump instructed negotiators to suspend discussions, while Iranian President Masoud Pezeshkian reiterated that Tehran would not engage in “imposed negotiations under threats or blockade.” The Iran conflict has now entered its ninth week, triggering what the IEA has described as the largest energy supply shock on record, while intensifying inflationary pressures and weighing on the global growth outlook. Meanwhile, reports indicated that Iran had submitted a new proposal to the US aimed at reopening the Strait of Hormuz and easing tensions. The proposal, reportedly conveyed via Pakistani mediators, called for extending the ceasefire to allow progress toward a lasting settlement, while postponing nuclear talks until the US blockade of the strait is lifted.

WTI crude futures eased back toward $95 per barrel on Monday after reaching as high as $96.7 earlier in the session, following reports that Iran had submitted a new proposal to the US aimed at reopening the Strait of Hormuz and de-escalating the conflict. The proposal, reportedly conveyed via Pakistani mediators, called for an extension of the ceasefire to allow negotiations toward a permanent end to hostilities, while delaying nuclear talks until the US blockade of the strait is lifted. Earlier in the session, oil prices had jumped after US President Donald Trump instructed negotiators to suspend discussions, while Iranian President Masoud Pezeshkian reiterated that Tehran would not engage in “imposed negotiations under threats or blockade.” The Iran conflict has now entered its ninth week, triggering what the IEA has described as the largest energy supply shock on record, while amplifying inflationary pressures and weighing on the global growth outlook.