Oil prices moved higher on Monday after reports suggested the United States had adopted a tougher position in ongoing negotiations with Iran aimed at ending months of conflict in the Middle East.
West Texas Intermediate (WTI), the US benchmark crude, climbed 2.5 percent to $89.60 per barrel when trading resumed. Brent crude, the global benchmark, also rose by 2.2 percent to $93.16 per barrel for August delivery.
The gains come just days after oil prices suffered their biggest weekly drop in months, falling more than 11 percent on growing expectations that Washington and Tehran were close to reaching a peace agreement that could reopen the Strait of Hormuz.
The strategic waterway remains one of the world’s most important energy routes, carrying a significant portion of global oil exports. Any disruption to traffic through the strait continues to have an immediate impact on international energy markets.
Market sentiment shifted over the weekend after reports from major US media outlets indicated that President Donald Trump had returned a revised draft agreement to Tehran with tougher conditions than previously proposed.
The development raised concerns among investors that negotiations could take longer than expected, delaying any potential breakthrough and prolonging uncertainty over oil exports and shipping activities in the Gulf region.
Analysts say the prospect of extended negotiations, coupled with the continued closure of the Strait of Hormuz, is likely to keep upward pressure on crude prices in the near term.
With global energy supplies closely tied to developments in the Gulf, traders are expected to monitor every stage of the negotiations for signs of progress or further setbacks.
