Oil prices moved higher on Monday, with Brent crude rising 1.6% to settle at $73.15 per barrel and WTI gaining 2.2% to $70.75 per barrel, as renewed military exchanges between the U.S. and Iran highlighted the fragility of the interim peace agreement while continued improvements in oil shipments through the Strait of Hormuz limited further gains.
Weekend strikes by both countries raised concerns that geopolitical tensions could once again disrupt Middle Eastern energy supplies. However, markets remained cautiously optimistic after reports that U.S. and Iranian technical teams are expected to meet in Doha in the coming days to continue implementing the interim agreement. Discussions are also underway between Iranian and Omani officials regarding new navigation routes through the Strait of Hormuz aimed at improving the safe movement of commercial shipping.
Although crude exports from the Persian Gulf have recovered to roughly three-quarters of pre-conflict levels, analysts noted that a full normalization of traffic will likely take time. Ongoing security concerns, underwater mines, elevated insurance costs, and shipping restrictions continue to slow the recovery, leaving a modest geopolitical risk premium embedded in oil prices.
Energy exports from the region have nevertheless continued to improve. Saudi Arabia resumed crude loadings at its Ras Tanura export terminal last week after a nearly four-month interruption, while producers across the Gulf have largely maintained oil and LNG shipments despite isolated security incidents. Overall, the market continues to balance gradually improving supply conditions against the risk that renewed military tensions could delay the full restoration of global energy flows.