Oil prices moved higher on Monday as markets remained uncertain over a potential US-Iran agreement, with ongoing tensions continuing to restrict supply and keep crude trading above the $100-per-barrel mark.
Brent crude futures rose by 67 cents to $108.84 per barrel at 0400 GMT, recovering slightly after a $2.23 decline in the previous session. Meanwhile, West Texas Intermediate increased by 65 cents to $102.59 a barrel after falling $3.13 on Friday.
Market analysts said prices remain strongly supported by persistent geopolitical uncertainty and supply disruptions linked to the ongoing conflict and tensions in the Middle East. The lack of a breakthrough in US-Iran negotiations has further added to market anxiety.
According to analysts, unless a durable agreement is reached that restores normal shipping flows through the Strait of Hormuz, oil prices are expected to stay elevated, with risks still tilted toward further increases.
Negotiations between Washington and Tehran continued over the weekend, with both sides reviewing proposals. While US President Donald Trump has prioritised reaching a nuclear agreement, Iran has insisted that broader issues, including the lifting of shipping restrictions, be addressed first before nuclear talks progress.
Adding to market dynamics, the OPEC+ announced on Sunday that it would increase output targets by 1,88,000 barrels per day in June for seven member countries. However, analysts suggest the additional supply is unlikely to significantly impact the market while regional disruptions persist.
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