Oil prices climbed on Monday as the world’s largest disruption to energy supply continues, with Iran denying that it has held talks with the United States to end the ongoing conflict in the Gulf. The comments directly contradicted US President Donald Trump, who suggested a resolution could be reached soon.
Brent crude rose $1.83, or 1.8 percent, to $101.77 per barrel, while US West Texas Intermediate (WTI) gained $2.21, or 2.5 percent, to $90.34. The increase follows a sharp drop of more than 10 percent in crude futures on Sunday, after Trump announced a five-day delay in strikes targeting Iran’s power plants. The president said the pause followed discussions with unnamed Iranian officials that yielded “major points of agreement.”
The conflict has effectively halted shipments of nearly one-fifth of the world’s oil and liquefied natural gas through the Strait of Hormuz, which connects the Persian Gulf with the Gulf of Oman. The International Energy Agency has described the disruption as the largest in history.
“The reality on the ground is unchanged,” said Nikos Tzabouras, an analyst at Jefferies-owned Tradu.com. “The Strait of Hormuz remains effectively closed, and supply disruptions linger, tightening the market.”
In recent developments, Iran launched waves of missile strikes into Israel, underscoring ongoing regional tensions. Three senior Israeli officials, speaking on condition of anonymity, said Trump appeared determined to reach a deal but expressed doubt that Iran would meet US demands in any new round of negotiations.
Analysts caution that the situation remains precarious. BCA Research noted that while there may be tentative signs of de-escalation, unresolved risks around the Strait of Hormuz continue to threaten energy shipments. The firm warned that headline-driven volatility makes it too early for traders to position aggressively for lower oil prices.
Macquarie analysts suggested that if the strait remains effectively shut through the end of April, Brent crude could reach $150 per barrel, surpassing the all-time high of $147 recorded in 2008.
The conflict has also targeted energy infrastructure within Iran. The Fars news agency reported that a gas company office and a pressure-reduction station were hit in Isfahan, while a projectile struck a gas pipeline supplying a power station in Khorramshahr. These incidents add to mounting concerns about regional energy security and continued supply disruptions.
The combination of halted exports, missile attacks, and uncertainty over potential diplomatic progress has kept global oil markets on edge. Traders and analysts are monitoring developments closely, aware that any shift in control over the Strait of Hormuz could have immediate and severe effects on global energy prices.
