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US Oil Update: Oil Rises Amid Mixed Diplomatic Signals; Iran Denies Doha Talks

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Crude futures rose on Monday after the US and Iran agreed to cease retaliatory military strikes over the weekend, but gave mixed signals on further talks to iron out details of the peace agreement.

Front-month West Texas Intermediate crude futures gained by 1.3% to $70.13 per barrel, while Brent futures were up about 0.9% to $72.66/bbl.

Although shipping has resumed through the critical Strait of Hormuz, mixed diplomatic signals over upcoming Doha peace talks capped broader market enthusiasm.

While US indicated that teams were slated to convene in Doha to iron out implementation details of their broad Memorandum of Understanding, Iran's Deputy Foreign Minister Kazem Gharibabadi explicitly denied that any working-group meetings with US representatives are scheduled for this week.

Over the weekend, US Central Command said it launched retaliatory airstrikes against Iranian military targets following an Iranian drone attack on a commercial vessel.

These gains rapidly evaporated during Asian trading hours after both Washington and Tehran agreed to halt active hostilities.

Despite the immediate normalization of shipping lanes, energy market analysts remain highly cautious.

ING analysts said that "as we have seen over the last four months, the situation can change very quickly. It took long enough to agree on a temporary ceasefire."

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