Oil prices climbed on Monday as uncertainty over renewed peace talks between the United States and Iran and a sharp decline in shipping activity through the Strait of Hormuz heightened concerns over global energy supplies.
Brent crude futures rose as much as 1 per cent to $89.40 per barrel before easing to $89.20, up 72 cents, by 2:29 a.m. GMT. US West Texas Intermediate (WTI) crude also gained 44 cents to trade at $82.83 a barrel.
Both benchmarks rose by more than 5 per cent last week following attacks on tankers operated by Abu Dhabi National Oil Company (ADNOC) in the Strait of Hormuz and an attack on a Saudi Aramco refinery.
Market sentiment was further affected over the weekend after Iranian Foreign Minister Abbas Araqchi said Tehran had yet to decide whether to resume negotiations with Washington.
US President Donald Trump, meanwhile, urged Americans to accept somewhat higher petrol prices while the conflict persists.
Priyanka Sachdeva, head of market insights at Phillip Nova in Singapore, said oil prices had recovered significantly from their early-August lows as hopes for a lasting US-Iran agreement weakened and geopolitical risk returned to the market.
She, however, said further gains could be limited unless there was evidence of renewed military escalation in the Strait of Hormuz, particularly significant damage to tankers or oil infrastructure.
Shipping activity through the strategic waterway also slowed sharply over the weekend. Data from ship-tracking firm Kpler showed that only five commodity vessels passed through the strait on Saturday, while none was recorded on Sunday, compared with 31 vessels during the previous weekend.
The Strait of Hormuz is a critical global energy route, and any prolonged disruption could place additional pressure on crude oil and other energy prices.
The United Arab Emirates accused Iran of attacking a third ADNOC-operated vessel transiting the strait on Friday, according to state news agency WAM.
The UAE had earlier blamed Iran for two other incidents involving ADNOC vessels in the waterway on Thursday.
The latest developments have renewed concerns that escalating tensions around the Strait of Hormuz could disrupt oil supplies and increase volatility in global energy markets.
