Oil Starts the Week Higher

Crude oil prices opened the week more than 1.5% higher, climbing above $78 per barrel as uncertanity over the reopening of Strait of Hormuz remined. US and Iran resumed talks in Switzerland, but tensions persisted. Iranian state media said Iranian negotiators demanded an end to the war in Lebanon as a condition for further talks, while President Trump renewed threats against Iran even as Vice President JD Vance praised the talks' progress. Iran said the US had failed to secure a ceasefire in Lebanon and announced it had again halted traffic through the strait. Tehran also said Sunday's talks would exclude substantive issues such as its nuclear programme. Meanwhile, President Trump warned of renewed US strikes unless Iran curbs its proxies in Lebanon. He also threatened tolls in the absence of a deal and warned Tehran against closing the Strait of Hormuz.

Crude oil prices were near $77 per barrel on Friday and were heading toward a weekly decline of roughly 8% after Israel and Hezbollah reached a ceasefire agreement set to begin on Friday. The truce, if maintained, could remove a major obstacle to broader peace efforts between the US and Iran. Meanwhile, Tehran said vessels passing through the Strait of Hormuz would require mandatory insurance policies, which are currently free but could incur charges later, reinforcing its claims over the strategic waterway. Market data suggested shipping activity slowed after an earlier surge in tanker movements, with no outbound vessels seen leaving the Persian Gulf on Friday morning. In contrast, nearly 10 million barrels of crude were observed transiting or positioned near the strait on Thursday, including the first Saudi-owned tankers to move since the conflict began more than three months ago. Uncertainty continues after planned US-Iran talks in Switzerland were canceled.

Crude oil steadied near $77 per barrel on Friday as trading remained volatile amid shifting flows through the Strait of Hormuz and renewed uncertainty over US-Iran negotiations on a longer-term peace agreement. Market data suggested shipping activity slowed after an earlier surge in tanker movements, with no outbound vessels seen leaving the Persian Gulf on Friday morning. In contrast, nearly 10 million barrels of crude were observed transiting or positioned near the strait on Thursday, including the first Saudi-owned tankers to move since the conflict began more than three months ago. However, optimism from an interim US-Iran accord was tempered after planned talks in Switzerland were delayed, raising doubts over the durability of any supply recovery. Despite recent stabilization, crude was on track for a weekly decline of around 10%, erasing most of the gains accumulated during the height of the conflict.