FX.co ★ Crude Oil Pares Climb

WTI crude oil futures rose less than 2% to just under $98 per barrel on Monday afternoon, sharply paring intraday gains that had reached as high as 9% earlier in the session, as investors grew more optimistic that a deal between the US and Iran could ultimately be reached. The US had failed to secure an agreement with Iran over the weekend, prompting President Trump to announce a blockade on Iranian oil shipments. However, Trump later said that Tehran had made contact and was now seeking to restart negotiations. At the same time, an OPEC+ report showed the group’s output fell by 7.9 million barrels per day in March due to the closure of the Strait. Separately, Saudi Arabia reported that it had fully restored pumping capacity through its East–West pipeline to the Red Sea, as well as production from the Manifa field.