Oil rises as US-Iran deal remains elusive
Brent crude futures were up 67 cents, or 0.6%, to $108.84 a barrel at 0400 GMT after settling down $2.23 on Friday. US West Texas Intermediate was up 65 cents, also 0.6%, at $102.59 a barrel, after a $3.13 loss on Friday
Highlights
- US to start operation to aid stranded ships, Trump says
- Iran reviewing US response to 14-point proposal
- OPEC+ agrees third oil output quota hike since Hormuz closure
Oil prices edged higher on Monday, supported by the absence of a US-Iran peace deal that kept supplies constrained and prices above $100 a barrel.
Brent crude futures were up 67 cents, or 0.6%, to $108.84 a barrel at 0400 GMT after settling down $2.23 on Friday. US West Texas Intermediate was up 65 cents, also 0.6%, at $102.59 a barrel, after a $3.13 loss on Friday.
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"The broader market remains tightly supported by persistent supply disruptions and geopolitical uncertainty," said Priyanka Sachdeva, analyst at Phillip Nova.
"Unless there is a clear and sustained resolution that restores normal flows through the Strait of Hormuz, oil prices are likely to remain elevated, with risks still tilted toward further upside."
President Donald Trump said the US would begin efforts to assist ships stranded in the Strait of Hormuz, but prices stayed above $100 a barrel, with no peace deal in sight and shipping through the strategic waterway still constrained.
Negotiations between the US and Iran continued over the weekend, with both sides assessing each other's responses.
Trump has made securing a nuclear deal with Tehran a priority, but Iran wants to defer nuclear talks until after the war and first lift rival blockades on Gulf shipping.
On Sunday, the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, said it would raise oil output targets by 188,000 barrels per day in June for seven members, marking the third consecutive monthly increase.
The rise matches that agreed for May, minus the share of the United Arab Emirates, which left OPEC on May 1. However, the additional barrels are expected to remain largely on paper as long as the Iran war continues to disrupt Gulf oil supplies through the Strait of Hormuz.
