Brent crude trimmed earlier gains to trade near $88 per barrel on Monday, after briefly climbing above $91, as signs of renewed diplomatic engagement between the US and Iran eased some supply worries. Iran’s Foreign Ministry said it had received proposals from international mediators aimed at de-escalating tensions, though it offered no further details.
Oil prices have remained highly volatile as markets react to rapidly changing expectations of either escalation or de-escalation in the conflict, which has repeatedly disrupted traffic through the Strait of Hormuz. Earlier in the session, prices jumped following fresh military exchanges between the US and Iran, including attacks on vessels attempting to transit the strait and a weekend strike on an oil facility in Kuwait. Even after the pullback, geopolitical risks continue to embed a substantial risk premium in crude prices.
