Oil Prices Move Higher

Crude oil extended losses and fell toward $82 per barrel on Monday, its lowest level in a week, as optimism grew that the conflict in the Middle East could soon ease. President Trump said the US was holding "good talks" with Iran and that there was a chance of reaching a deal, but warned that US strikes would resume if negotiations failed. The US paused its military strikes on Iran on Friday, following nearly two weeks of hostilities and Tehran said it had suspended its retaliatory military operations in response and entered talks with Oman regarding navigation through Hormuz. Supply conditions also improved after crude loadings resumed at the Caspian Pipeline Consortium terminal on Russia's Black Sea coast, a key export route for Kazakh oil that had recently been disrupted by Ukrainian drone attacks. Meanwhile, Houthi militants claimed to have targeted Saudi Aramco-linked facilities in Jizan and Yanbu, although neither the Saudi government nor Aramco confirmed it.

Crude oil fell sharply to as low as $82.11 per barrel on Monday before trimming some losses to trade around $83.40, as signs of easing geopolitical tensions reduced concerns over supply disruptions. The US paused its attacks against Iran, while Tehran said it had halted its retaliatory military strikes in response and engaged in talks with Oman regarding the Strait of Hormuz. Supply conditions also improved after crude loadings resumed at the Caspian Pipeline Consortium terminal on Russia's Black Sea coast, a key export hub for Kazakh oil that had recently been disrupted by Ukrainian drone attacks. Despite Monday's decline, oil remains up more than 20% this month as supply disruptions expanded from the Strait of Hormuz to the Red Sea, an increasingly important alternative route for Saudi Arabian crude exports. Yemen's Iran-backed Houthi militants claimed to have targeted Saudi Aramco-linked facilities in Jizan and Yanbu, although neither Saudi Arabia nor Aramco confirmed the attacks.

Crude oil declined toward $83 per barrel on Monday, giving back gains from last week after the US and Iran halted strikes against each other over the weekend amid efforts to revive diplomacy, with President Donald Trump reportedly open to renewed peace talks. The US paused its attacks against Iran starting late Friday without any official announcement, while Tehran said it had halted its retaliatory military strikes in response and engaged in talks with Oman regarding the Strait of Hormuz. Still, Iran-backed Houthi forces in Yemen claimed responsibility for attacks on facilities associated with Saudi Aramco at the Red Sea ports of Jizan and Yanbu over the weekend. Oil prices have surged nearly 40% this month as supply disruptions expanded from the Strait of Hormuz to the Red Sea, an increasingly important alternative route for Saudi Arabian crude exports that transports millions of barrels each day.