Oil prices surge as Hormuz traffic slows and US-Iran hopes fade
Oil prices have risen in global markets as fading hopes for US-Iran peace talks and slower Strait of Hormuz traffic have revived geopolitical concerns.
Brent crude futures climbed nearly 1% to $89.40 per barrel, while it was trading around $89.20 at 0229 GMT. US West Texas Intermediate (WTI) crude also rose 44 cents to $82.83 per barrel.
Both benchmarks gained more than 5% last week following attacks involving tankers operated by Abu Dhabi National Oil Company (ADNOC) in the Strait of Hormuz and an attack on a Saudi Aramco refinery.
Priyanka Sachdeva, head of market insights at Phillip Nova in Singapore, said oil prices had almost recovered from their early-August lows as the market again priced in geopolitical risks.
She said further major gains could remain limited unless there is clear evidence of renewed tensions in the Strait of Hormuz, particularly damage to tankers or major oil infrastructure.
Shipping data showed a sharp decline in vessel traffic through the strategic waterway over the weekend. Kpler data indicated that only five commodity vessels crossed the strait on Saturday, while no vessels were recorded on Sunday. This compared with 31 vessels during the previous weekend.
The UAE has accused Iran of targeting a third ADNOC-operated vessel on Friday. Iranian Foreign Minister Abbas Araghchi said Iran had not yet decided to resume negotiations with Washington.
Meanwhile, US President Donald Trump has urged Americans to accept somewhat higher gasoline prices amid the continuing conflict.