Brent crude fell more than 2% toward $107 per barrel on Monday, retracing part of last week’s strong rally as investors weighed persistent geopolitical risks against signs of a recovery in Middle Eastern oil supplies toward pre-conflict levels. US Energy Secretary Chris Wright noted that crude flows from the Persian Gulf had rebounded to about 80% of their pre-war volumes, though shipments of refined products remained constrained.
US President Donald Trump said he had reached an agreement with Russia on diesel exports and postponed additional sanctions in order to avoid disrupting peace talks with Ukraine. At the same time, Ukrainian attacks on Sunday ignited fires at an oil export terminal and a storage facility in St. Petersburg. In the Middle East, fighting between Saudi Arabia and Iran-backed Houthi rebels showed little sign of easing, and three tankers were damaged over the weekend in the Strait of Hormuz.
