Oil Prices Struggle for Direction as US-Iran Talks Stall, Hormuz Shipping Slows

Post by : Saif

Oil prices struggled for direction as stalled negotiations between the United States and Iran revived concerns over prolonged tensions in the Middle East, while the lack of major supply disruptions limited further gains.

Brent crude initially climbed around 1% to $89.40 a barrel before easing to about $89.28. US West Texas Intermediate crude was down around 67 cents at $81.74 a barrel.

Both benchmarks had gained more than 5% during the previous week following attacks involving tankers operated by Abu Dhabi National Oil Company in the Strait of Hormuz and an attack on a Saudi Aramco refinery.

US-Iran Talks Remain Uncertain

Uncertainty over diplomatic efforts between Washington and Tehran is adding pressure to energy markets.

Iranian Foreign Minister Abbas Araqchi said Iran had not yet decided whether to resume negotiations with the United States.

US President Donald Trump, meanwhile, urged Americans to accept somewhat higher gasoline prices while the conflict continues.

Market analysts said oil prices could remain supported by geopolitical risk, but a sustained increase would likely require evidence of renewed attacks causing significant damage to tankers or oil infrastructure.

Hormuz Shipping Slows

Shipping activity through the Strait of Hormuz has slowed following recent attacks on tankers, according to vessel-tracking data.

Five commodity vessels passed through the strategic waterway on Saturday, while no such vessels were recorded transiting on Sunday. During the previous weekend, 31 commodity vessels were recorded passing through the strait.

The decline has raised concerns about the potential impact on global oil and energy supplies because the Strait of Hormuz is a critical route for shipments from major Middle Eastern producers.

Read more: Trump Warns Iran of ‘Bad Things’ as U.S. Warships Move Closer to Middle East

UAE Accuses Iran of Tanker Attack

The United Arab Emirates accused Iran of attacking another vessel operated by ADNOC while it was transiting the Strait of Hormuz.

The alleged incident took place on Friday, following two other reported incidents involving ADNOC vessels in the waterway a day earlier.

The incidents have increased concerns among shipping companies and energy traders about the safety of vessels passing through the strait.

Global Oil Market Watches Hormuz

The Strait of Hormuz remains central to the global energy market, making any prolonged disruption potentially significant for crude prices, shipping costs and fuel markets.

For now, the absence of a major supply outage has limited the rise in oil prices. However, continued attacks on tankers or damage to oil infrastructure could quickly increase the market's risk premium.

Traders are closely watching developments between Washington and Tehran, as well as shipping activity through the strategic waterway, for signs of whether the current disruption will deepen or ease.

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