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Oil Holds Above $69 as U.S.-Iran Strikes Pause Talks
Oil held above $69 after renewed U.S.-Iran strikes paused diplomatic talks. WTI recovered from Friday's dip below $70 as supply risk from the Strait of Hormuz returned.
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Oil held above $69 a barrel Monday after renewed U.S. strikes on Iranian military sites paused diplomatic talks, reviving supply risk from the Strait of Hormuz.
West Texas Intermediate crude rose 0.71% to $69.72 a barrel, recovering from Friday's dip below $70 – the first time since Feb. 27, the day before the Iran war began. Brent crude added 0.36% to $72.25.
Negotiations aimed at ending the conflict were put on hold after Washington launched strikes on Iranian coastal radar sites, missile storage, and drone locations in retaliation for Tehran's latest attacks on commercial shipping in the Strait, a Pakistani source involved in the talks told MS NOW. Representatives from all parties remain in Switzerland and are ready to resume once approval is given, the source said, without specifying who initiated the pause.
A senior Trump administration official disputed reports that negotiations had been abandoned. "Nothing has been cancelled," the official said. "Technical talks regarding the implementation of [memorandum of understanding] are on track for the coming days as planned." A U.S. official later told CNBC Sunday that "technical talks are slated to continue on all areas of the MOU." Both sides will stand down for now and vessels can move freely, the official added.
The diplomatic uncertainty followed a renewed flare-up. President Donald Trump warned Iran of devastating consequences after U.S. forces targeted Iranian military facilities. Iran's neighbors Kuwait and Bahrain both reported missile and drone attacks overnight. Trump wrote on Truth Social: "United States aircraft just struck Iranian missile and drone storage locations, and coastal radar sites, for violating the Cease Fire Agreement, AGAIN!"
The Strait of Hormuz handles about a fifth of global oil consumption. Any disruption to tanker traffic there tends to push crude prices higher, though the market has been pricing in a lower risk premium since the war began. Friday's dip below $70 suggested traders were betting on a ceasefire. Monday's rebound shows that bet is not yet safe.
For a broader look at how supply shocks and demand shifts are reshaping crude markets, see our oil bull trade unravels as demand, OPEC+ and Iran shift.