Oil prices hold steady as US-Iran talks hit a deadlock
Photo: prices rose 5% last week due to tanker attacks (Getty Images)
Oil prices were largely unchanged at the start of trading on Monday, weighed down by uncertainty in US-Iran negotiations and recent attacks in the Strait of Hormuz, according to Reuters.
Brent crude futures rose by 20 cents (0.2%) to $88.72 per barrel.
US West Texas Intermediate (WTI) crude futures, meanwhile, fell by 5 cents to $82.32 per barrel.
Both benchmark oil prices rose more than 5% last week after attacks were carried out in the Strait of Hormuz on tankers owned by the Abu Dhabi National Oil Company.
According to the latest data cited by Reuters, vessel traffic through the Strait of Hormuz slowed over the weekend following the tanker attacks. On Saturday, five cargo vessels passed through the strait, while on Sunday none were recorded, according to data from the Kpler vessel tracking system, compared with 31 ships the previous weekend.
Additionally, on Friday, the United Arab Emirates accused Iran of attacking an ADNOC vessel transiting the strait. This came after the company had also accused Iran of attacking two other ADNOC vessels in the strait the day before.
What else is important to know
Yesterday, Bloomberg reported that Middle Eastern oil producers have increased covert shuttle shipments of crude through the Strait of Hormuz. This, in turn, helps avoid acute shortages on the global market and curbs price spikes.
US President Donald Trump stated his intention to declare the Strait of Hormuz a US territory. However, Iran soon ridiculed the idea, stating that a waterway cannot be seized with a social media post.
According to The Washington Post, the Gulf countries are all dissatisfied with Trump's policy toward Iran. They believe he is incapable of providing the diplomacy needed to achieve peace with Iran.
