Crude oil rose more than 2% to above $94 a barrel on Monday, rebounding from a 2.3% drop in the previous session as uncertainty over US-Iran diplomacy kept supply risks elevated. Tehran continues to back a proposal that US President Donald Trump has rejected, which calls for lifting a US naval blockade and oil sanctions as preconditions for reopening the Strait of Hormuz. Iranian Foreign Minister Abbas Araghchi described these demands as longstanding and said Washington would need to offer concessions. Even so, Trump indicated that talks could resume this week.
Oil markets have remained volatile, with periodic optimism over diplomatic progress repeatedly giving way to renewed uncertainty in the conflict’s eighth month. Regional tensions also persisted, as the Saudi-led coalition reported intercepting Houthi drones headed toward Riyadh and a missile targeting Khamis Mushait. Alerts were also issued around Abha and Jazan, where Aramco facilities are located.
