Oil prices reached a record high, breaking monthly records due to uncertainty surrounding negotiations between the United States and Iran, as well as concerns over prolonged energy supply disruptions from the Persian Gulf.
West Texas Intermediate crude traded at approximately $92 per barrel, reflecting a rise of over 5% from the previous session, while Brent crude dipped slightly below $95.
The price increase on Monday followed reports that Tehran had halted discussions with Washington in protest against Israeli attacks in Lebanon. Prices later moderated after U.S. President Donald Trump stated that dialogue was ongoing.
Trump also indicated that a memorandum of understanding with Iran regarding the reopening of the Strait of Hormuz could be signed within the week, based on a conversation he had with ABC News. He noted that the U.S. still needed to secure a few more points before finalizing an agreement.
The lack of clarity regarding a potential extension of the current ceasefire and the future of energy flows through the Strait of Hormuz has impacted oil prices, which had fallen last month amid optimism about a possible deal.
According to the semi-official Iranian news agency Tasnim, Tehran and its regional intermediaries have included a complete closure of the Strait of Hormuz and the Bab-el-Mandeb Strait—an essential alternative for oil exports—in their agenda.
“Further indications that the parties are no longer actively negotiating will also remove some of the security guarantees the market relied on to determine the best outcome,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group.
She added, “We have seen a lot of disputes during this conflict, and nothing has been definitively resolved.”
The report also noted Iran’s threats to close the Bab-el-Mandeb Strait.
Bloomberg highlighted that the confusion was compounded by differing assessments from Trump and Israeli Prime Minister Benjamin Netanyahu regarding discussions about military actions in Lebanon.
Oil prices have surged to record levels due to uncertainties in US-Iran negotiations and potential energy supply disruptions. The situation remains fluid as both nations navigate complex geopolitical dynamics.