FX.co ★ Oil Rises as Middle East Disruptions Persist

WTI crude oil futures climbed more than 2% to $96.50 per barrel on Monday, as stalled peace efforts in the Iran conflict kept the Strait of Hormuz effectively shut and prolonged supply disruptions roiling global markets. Reports suggest Tehran has floated the idea of reopening the strait through direct talks with the United States, but tensions remain elevated.

Over the weekend, President Trump canceled a planned visit to Pakistan by key envoys involved in mediation, while Iran reiterated that it will not negotiate under pressure. Although a ceasefire has largely held since early April, reciprocal shipping blockades have driven traffic through the strait to nearly zero. Trump is expected to meet with his national security team to seek a way out of the impasse.

Now in its ninth week, the conflict has pushed energy prices higher and triggered shortages in major consuming regions. The International Energy Agency has warned of an unprecedented supply shock and mounting risks of a slowdown in global oil demand.