US Oil Update: Crude Rises as US-Iran De-escalation Eases Supply Disruption Fears
Crude oil futures settled higher in after-hours trading on Monday after an agreement between the US and Iran to halt recent hostilities following a weekend of tit-for-tat strikes that reignited concerns over potential supply disruptions.Front-month West Texas Intermediate crude futures climbed 1.8% to $70.45 per barrel, while Brent futures edged higher by 1.1% to $72.78/bbl.Bjarne Schieldrop, chief commodities analyst at SEB Research, said the muted move higher can be attributed to US and Iranian rockets in the Persian Gulf over the weekend, which ended with an agreement between the US and Iran to stop.The US and Iran are poised to hold fresh talks on Tuesday in Doha, Qatar, President Trump said in a social media post on Monday, following a weekend of hostilities."The meeting in Doha is going to be perhaps important, perhaps not. We're going to find out... It's really very simple," Trump told reporters at the White House on Monday.However, Iran's Deputy Foreign Minister Kazem Gharibabadi said "no technical talks" with the US have been scheduled in Doha this week, refuting media reports that the two sides were set to meet in the Qatari capital."Holding technical meetings of the working groups has not been scheduled for this week," Gharibabadi said, adding that the first round of talks will be held once conditions are met.Traffic via the Strait of Hormuz continued to move through on Monday, with MarineTraffic reporting 108 verified crossings between 26 and 28 June, covering container, tanker, LNG-linked, bulk, and service vessel movements.Saxo Bank strategists said Iran's foreign minister reiterated that Tehran retains exclusive authority over traffic through the strategic waterway under the preliminary peace agreement, thereby elevating the risk of renewed supply disruptions.Meanwhile, Iran has stressed that the Hormuz will not return to pre-war conditions, emphasizing its sovereign right over the waterway. Tehran reportedly plans to move forward with exerting its control over maritime traffic via the strategic waterway, even without Oman.Schieldrop said that Oman told European officials that ships may have to pay fees for transiting the Hormuz in the future, while Iran has stated that free passage is guaranteed only for the 60 days of the ongoing US-Iranian negotiations.