Oil prices rose on Monday as expectations of a breakthrough in US-Iran peace talks weakened and tanker traffic through the Strait of Hormuz slowed, increasing concerns over potential disruptions to global crude supplies.
Brent crude futures gained as much as 1% to $89.40 per barrel before trading around $89.20, up 72 cents, by 0229 GMT.
US West Texas Intermediate (WTI) crude futures also increased, rising 44 cents to $82.83 per barrel.
Both Brent and WTI gained more than 5% last week following attacks involving tankers operated by Abu Dhabi National Oil Company in the Strait of Hormuz and an attack on a Saudi Aramco refinery.
The latest price movement reflects renewed concerns about the impact of ongoing tensions on oil transportation and regional energy infrastructure.
The Strait of Hormuz remains a key route for global oil shipments, making any slowdown in tanker traffic a major concern for energy markets.
Iranian Foreign Minister Abbas Araqchi said over the weekend that Tehran had not yet decided whether to resume negotiations with the United States.
Meanwhile, US President Donald Trump urged Americans to accept somewhat higher gasoline prices while the conflict continues.
The uncertainty has reduced market expectations for a lasting diplomatic resolution and contributed to renewed geopolitical risk premiums in crude prices.
Priyanka Sachdeva, head of market insights at Phillip Nova in Singapore, said oil prices had almost completely recovered from their early-August lows as hopes for a more permanent US-Iran resolution faded.
With diplomatic uncertainty continuing and shipping activity through the Strait of Hormuz slowing, investors are closely watching developments in the region for their potential impact on global oil supplies and prices.
