Crude oil hovered around $82 a barrel on Monday as traders balanced persistent geopolitical tensions against indications that more oil is passing through the Strait of Hormuz than previously anticipated. Major Gulf producers appear to be sustaining robust export flows from the Persian Gulf despite the ongoing conflict, tempering fears of an immediate supply disruption.
Diplomatic efforts between Iran and the United States remain stalled. President Donald Trump reportedly threatened military action against Oman if it interferes with the U.S. blockade of Iranian vessels, though oil prices showed little immediate response to the remarks.
At the same time, Iran and Oman seem to be making headway toward an agreement on managing maritime traffic through the Strait of Hormuz, but the United States has not taken part in those talks. Washington is unlikely to endorse any arrangement that does not ensure unrestricted transit through the strategically vital shipping corridor.