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EMEA Oil Update: Crude Steadies After US-Iran Talks Report Amid Houthi Threats

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EMEA crude futures held steady in after-hours trading on Monday as reports of possible US-Iran talks offered relief to market concerns about a wider Middle East conflict, though Houthis' maritime blockade threats kept supply disruption risks in focus.

Brent crude futures rose 0.8% to $88.76 per barrel, while Murban crude futures eased by 0.1% to $81.42/bbl.

Soojin Kim, research analyst at MUFG, said that with global oil inventories already at historically low levels outside China, markets remain highly sensitive to any further disruption to Gulf exports.

On Monday, Iran confirmed receiving proposals from "certain" mediators aimed at preventing further escalation of tensions with the US, according to Iranian media reports.

Esmail Baghaei, the spokesperson of Iran's foreign ministry, said during his weekly press briefing on Monday that mediators are actively striving to prevent further escalation and have conveyed proposals to Tehran, but he did not give further details.

Qatar and Pakistan, the main intermediaries in the conflict, reportedly view a return to US-Iran positions of pre-July 9 as a first step.

Meanwhile, Yemen's Houthis declared an immediate maritime embargo against Saudi Arabia on Monday, warning that any further escalation by Riyadh would be met with a broader response.

"The Yemeni Armed Forces declare a maritime embargo against the criminal Saudi enemy... effective immediately upon the issuance of this statement," Houthi rebel spokesperson Yahya Saree said in a video published on X.

The Houthis have repeatedly threatened to close the Bab el-Mandeb Strait during the Middle East conflict. A wider conflict with the Houthis could jeopardize Saudi Arabia's oil exports through its East-West Pipeline, which allows crude to bypass the Strait of Hormuz.

US Central Command said on Sunday that it bombed Iran for the ninth consecutive night in retaliation for repeated attacks on commercial vessels transiting the Hormuz. The UKMTO said a vessel was struck by a projectile off Oman's coast on Sunday, causing a fire onboard.

On Monday, President Trump updated UK Prime Minister Andy Burnham on developments in the Middle East and discussed efforts to ensure the safe passage of commercial shipping through the Hormuz.

The US-Iran hostilities have disrupted energy flows through the Strait, with the latest data from Kpler showing that traffic remained below normal levels, with only 30 verified transits recorded between July 17 and 19.

Gelber & Associates said after reclaiming the $80 level, crude is beginning to shift from a purely macro-driven trade toward one increasingly influenced by tightening export availability and improving physical market signals.

Kpler said while the International Maritime Organization's incident tracker shows no additional confirmed attacks since July 16, the broader security environment remains fragile.

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