Crude oil prices climb towards $90 a barrel as US-Iran tensions raise supply risks

Crude oil prices rose on Monday as hopes of a breakthrough in US-Iran peace talks weakened. Meanwhile, a sharp slowdown in tanker traffic through the Strait of Hormuz heightened concerns over supply disruptions.

Brent crude futures rose as much as 1% to $89.40 a barrel and were last trading 72 cents higher at $89.20 at 0229 GMT. US West Texas Intermediate (WTI) crude futures gained 44 cents to $82.83 a barrel.

Both benchmarks had climbed more than 5% last week following attacks on tankers operated by Abu Dhabi National Oil Company (ADNOC) in the Strait of Hormuz and an attack on a Saudi Aramco refinery.

Market sentiment was further eroded by uncertainty over a potential diplomatic resolution to the conflict. Iranian Foreign Minister Abbas Araqchi said over the weekend that Tehran had not yet decided whether to resume talks with the United States. US President Donald Trump, meanwhile, urged Americans to accept slightly higher gasoline prices while the conflict continues.

Hormuz traffic falls sharply

The slowdown in shipping through the Strait of Hormuz has added to concerns about the flow of crude and other commodities through one of the world's most important energy chokepoints.

Five commodity vessels transited the strait on Saturday, while no vessels were registered as having crossed on Sunday, according to ship-tracking data from Kpler. This compares with 31 commodity vessels that transited the waterway during the previous weekend.

The Strait of Hormuz is a critical route for global energy supplies, making any sustained disruption a major risk for oil markets.

The United Arab Emirates also accused Iran of attacking a third ADNOC-operated vessel while it was transiting the strait on Friday, the Emirati state news agency WAM reported. The UAE had earlier blamed Iran for two other incidents involving ADNOC vessels in the strait on Thursday evening.

The latest attacks and reduced shipping activity have raised concerns that a prolonged disruption could tighten global crude supplies and keep prices elevated, particularly if diplomatic efforts to de-escalate the conflict fail.

For the oil markets, the immediate focus is likely to remain on developments around the US-Iran conflict, tanker movements through the Strait of Hormuz, and any further attacks on energy infrastructure or shipping.