Oil prices edged higher on Monday, supported by ongoing geopolitical tensions and the absence of a U.S.–Iran peace agreement, which has continued to restrict global supply flows.
Brent crude futures rose by 67 cents, or 0.6 per cent, to $108.84 per barrel at 0400 GMT, recovering partially after a $2.23 decline on Friday. U.S. West Texas Intermediate (WTI) also gained 65 cents, or 0.6 per cent, to $102.59 per barrel, following a sharper $3.13 drop in the previous session.
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Market analysts say prices remain elevated due to persistent supply disruptions and uncertainty surrounding the Strait of Hormuz, a critical global shipping route.
“The broader market remains tightly supported by persistent supply disruptions and geopolitical uncertainty,” said Priyanka Sachdeva, an analyst at Phillip Nova. She added that without a sustained resolution restoring normal shipping flows, oil prices are likely to remain high with further upside risks.
The ongoing tensions follow remarks by U.S. President Donald Trump, who said the United States would begin efforts to assist ships stranded in the Strait of Hormuz. However, the announcement has not eased market concerns, as no peace deal has been reached and shipping activity remains constrained.
Negotiations between Washington and Tehran continued over the weekend, with both sides reviewing proposals but failing to reach an agreement. While the U.S. continues to push for a nuclear deal, Iran has insisted that talks be postponed until after the conflict ends and shipping restrictions in the Gulf are lifted.
Meanwhile, the Organisation of the Petroleum Exporting Countries and allies (OPEC+) agreed to raise output targets by 188,000 barrels per day in June for seven member countries. The adjustment mirrors the increase planned for May, excluding the United Arab Emirates, which exited the group earlier in the month.
Despite the production adjustment, analysts expect the additional supply to remain largely theoretical, as ongoing conflict in the Gulf continues to disrupt oil transportation through the Strait of Hormuz.
Oil markets remain highly sensitive to developments in the region, with traders closely watching diplomatic efforts and security conditions that could determine future price movements.
