Oil prices rose on Monday after renewed US-Iran hostilities in the Strait of Hormuz stalled the recovery in energy shipments that had briefly pushed prices down last week.
Brent crude futures climbed 58 cents, or 0.8%, to $72.57 a barrel by 02:07 GMT, while US West Texas Intermediate rose 88 cents, or 1.3%, to $70.11 a barrel.
The gains came after tanker traffic through the strait slowed following fresh attacks on vessels from Thursday, including one linked to Qatar. The episode triggered retaliatory strikes by both the US and Iran, marking the sharpest escalation since the two sides reached a preliminary ceasefire agreement.
Brent had fallen 10.6% last week, its third consecutive weekly decline, after oil shipments through the strait reached their highest level since the US-Israeli war on Iran began in late February.
ING analysts said in a Monday note that significant risks remain for oil markets, but that participants appear focused on what a sustained recovery in oil flows could mean for the global supply balance.
An American official said on Sunday that Iran and the US had agreed to halt the latest round of hostilities in the Gulf and resume talks over the Hormuz dispute, which capped oil’s gains.
Saudi Aramco, meanwhile, resumed crude loading at Ras Tanura, west of the strait, after a roughly four-month halt, as producers raised output and exports ahead of the interim agreement. Loading continued even after one of the company’s helicopter crashed at the facility on Sunday, killing all 14 people on board. The cause of the accident has not been determined.
