Oil prices climbed on Monday as stalled negotiations between the United States and Iran, along with continued disruptions in the Strait of Hormuz, kept global supply concerns firmly in focus.
Brent Crude rose 1.3 percent to $106.68 per barrel, while West Texas Intermediate gained around 1 percent to $95.35, after both benchmarks posted their strongest weekly gains since the start of the conflict.
The rally follows a sharp surge last week, when Brent and WTI jumped nearly 17 percent and 13 percent, respectively, reflecting heightened geopolitical risk premiums in energy markets.
Hopes of a diplomatic breakthrough weakened over the weekend after Donald Trump scrapped a planned visit by senior envoys to Islamabad, even as Iran’s Foreign Minister Abbas Araqchi traveled to Pakistan, signaling a widening gap in negotiations.
Tensions have remained elevated around the Strait of Hormuz, a critical chokepoint for global oil flows. Shipping activity continues to be constrained, with limited tanker movement reported, adding to fears of tighter supply.
Analysts say geopolitical rhetoric has further amplified market anxiety. Comments from Washington around potential military action in the region have added to what traders describe as a “war premium” embedded in oil prices.
Meanwhile, Goldman Sachs has raised its oil price forecasts for the fourth quarter, citing reduced output from the Middle East and persistent supply risks. The bank now expects Brent crude to average $90 per barrel and WTI to average $83 per barrel during the period.
The broader outlook suggests that energy markets will remain volatile, with prices highly sensitive to geopolitical developments, shipping disruptions, and any signals of progress or breakdown in diplomatic efforts.
With supply risks still elevated and negotiations uncertain, oil markets appear set to remain under upward pressure in the near term.
