Oil Price Volatility Amid Strait of Hormuz Tensions

On Monday, oil prices witnessed fluctuations as investors keenly awaited updates on U.S.-Iran negotiations while grappling with disruptions in the Strait of Hormuz. Brent crude futures fell 0.6% to $108.39 per barrel, while U.S. West Texas Intermediate crude dropped 1.2% to $110.21 per barrel.

Last Thursday saw a sharp 11% surge for WTI and an 8% increase for Brent—the most significant rise since 2020. Tensions remained high as Iran rejected terms for reopening the Strait after Trump's ultimatum. Iran insists on its positions amid ceasefire discussions.

Amidst ongoing strife, some ships navigated through the Strait, indicating Iran's selective policy for passage. European markets continued to lose supplies due to Middle East disruptions. Refiners in the U.S. and North Sea are seeking alternative crude sources due to tightening markets.