Oil Jumps as US-Iran Conflict Intensifies

Crude oil rose to a five-week high of around $83 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.

Crude oil steadied around $82.5 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.

Crude oil pared earlier gains to trade around $82 per barrel on Monday after briefly topping $85, as signs of renewed diplomatic efforts between the US and Iran eased some supply concerns. Iran's Foreign Ministry said it had received proposals from international mediators aimed at reducing tensions. He said that negotiations with the United States could continue if they serve the country’s national interests. Oil prices have remained highly volatile as markets continue to react to shifting prospects for either escalation or de-escalation in the conflict, which has repeatedly disrupted traffic through the Strait of Hormuz. Earlier in the session, prices surged after fresh military exchanges between the US and Iran, including attacks on vessels attempting to transit the strait and a strike on an oil facility in Kuwait over the weekend. Despite the pullback, geopolitical risks continue to keep a significant premium in crude prices.