Oil prices edged higher on Monday after the United States and Iran agreed to halt further military strikes ahead of peace talks in Doha this week, easing concerns over potential supply disruptions through the Strait of Hormuz.
Brent crude rose 0.55% to $72.39 a barrel, recovering modestly after falling to a four-month low in the previous session. Despite Monday’s gain, the global benchmark remains down 23.79% over the past month, although it is still 8.46% higher than a year ago.
The move came after several days of escalating tensions in the Middle East. Iran targeted a container ship on Thursday, prompting U.S. strikes the following day. Washington launched another round of attacks on Saturday after Tehran struck a vessel carrying Qatari oil, raising fears of disruptions to shipping through the Strait of Hormuz, one of the world’s busiest oil transit routes.
Market sentiment improved after both sides agreed to suspend further attacks ahead of talks scheduled for Tuesday in Doha. The discussions are expected to focus on security in the Strait of Hormuz and broader efforts to de-escalate the conflict.
Shipping activity through the strategic waterway has picked up since the interim agreement, although shipowners remain cautious as hundreds of vessels continue to await clearance in the Persian Gulf.
