-- Crude oil futures rose on Monday as traders showed skepticism that the US Project Freedom initiative can restore normal trade through the Strait of Hormuz.
Front-month Murban crude futures rose 1.7% to $105.49 per barrel, while Brent futures were up by 2.2% to $110.59/bbl.
"The market is steadier at the start of the new trading week, despite continued noise around developments in the Persian Gulf," ING said.
Sentiment was briefly shaken by the announcement of 'Project Freedom', a US plan to guide commercial ships out of the Strait of Hormuz.
However, initial sell-offs were quickly reversed as the market looked unconvinced by the plan's scope.
Analysts note that without active US Navy escorts for inbound vessels, the move likely only provides temporary relief by clearing out existing floating storage rather than restoring normal trade flows.
Supply concerns are further exacerbated by a lack of progress in diplomatic channels and shifts within OPEC+.
Although the group announced a 188,000 b/d supply increase for June, its first meeting since the UAE's surprise exit, market experts doubt the full volume will reach the market.
Over half of the scheduled increase is tied to Persian Gulf producers currently restricted by the Strait of Hormuz blockade.
With President Trump reportedly labeling Iran's latest peace proposal "unacceptable" and Tehran refusing to discuss nuclear terms until port blockades are lifted, crude prices continue to hold a significant risk premium.