Oil rises as renewed U.S.-Iran strikes reignite Middle East supply fears

• WTI crude edged up 0.71% to $69.72 per barrel while Brent climbed 0.36% to $72.25, with WTI having briefly fallen below $70 on Friday for the first time since February 27, the day before the Iran war began.
• U.S. forces struck Iranian missile and drone storage locations and coastal radar sites in retaliation for attacks on shipping through the Strait of Hormuz, a strategically vital route for regional oil and gas exports.
• While a Pakistani source reported negotiations were 'on hold,' U.S. officials disputed this, stating technical talks on the memorandum of understanding are 'on track' and that 'both sides will stand down for now and vessels can move freely.'

Market Summary: Oil Prices Rise on U.S.-Iran Tensions

Key Market Movements

Oil prices advanced on Monday as escalating U.S.-Iran military conflict revived supply disruption concerns from the Middle East. WTI crude rose 0.71% to $69.72 per barrel, while Brent crude climbed 0.36% to $72.25. Notably, WTI had fallen below $70 on Friday for the first time since February 27—the day before the Iran war began.

Geopolitical Developments

Diplomatic talks aimed at ending the U.S.-Iran conflict have reportedly been paused following renewed hostilities. The United States launched retaliatory strikes on Iranian military sites, including missile and drone storage facilities and coastal radar installations, after Tehran attacked commercial shipping in the Strait of Hormuz—a critical chokepoint for global oil supplies.

President Trump warned Iran of "devastating consequences" via Truth Social, stating that Iranian forces had violated cease-fire agreements. Neighboring countries Kuwait and Bahrain reported overnight missile and drone attacks, highlighting the conflict's regional spread.

Diplomatic Status

Conflicting reports emerged regarding peace negotiations in Switzerland. A Pakistani source indicated discussions were "on hold," though all parties remain present. However, senior Trump administration officials denied any cancellation, stating "technical talks regarding the implementation of [memorandum of understanding] are on track." One U.S. official confirmed that "both sides will stand down for now and vessels can move freely."

Market Implications

The renewed conflict threatens oil supply stability through the Strait of Hormuz, a vital shipping route for Middle Eastern energy exports. Energy markets remain unsettled as traders monitor both military developments and the uncertain diplomatic process, with supply disruption risks supporting crude prices despite broader economic headwinds.