Global oil prices rose sharply on Monday as uncertainty surrounding US-Iran negotiations and the reopening of the Strait of Hormuz increased concerns about international energy supplies.
Brent crude gained 2.57 percent in global markets, reaching $85.70 per barrel. The increase came as investors closely monitored developments involving Washington, Tehran and the strategically important waterway.
US crude also recorded a significant rise, increasing 2.52 percent to reach $80.15 per barrel. The move reflected renewed concerns about potential disruptions to oil shipments through the region.
Market participants are closely watching the future of US-Iran negotiations. Uncertainty over whether talks will make progress has increased caution among investors and contributed to higher crude prices.
The Strait of Hormuz is a major route for global maritime energy trade. Any prolonged disruption to shipping through the waterway could create concerns over supplies and place additional upward pressure on oil prices.
Iran, meanwhile, said discussions with Oman regarding maritime traffic through the Strait of Hormuz were progressing constructively. Tehran indicated that talks on the situation remained ongoing.
Despite the positive signals from Iran, investors continue to monitor developments closely. The outcome of diplomatic efforts and the future of shipping through the Strait could have a direct impact on energy markets.
The latest rise in global oil prices highlights the sensitivity of energy markets to geopolitical developments. Traders are expected to remain focused on US-Iran talks and any signs regarding the restoration of normal maritime traffic through the Strait of Hormuz.
