Oil prices edge higher on Monday

Oil prices edged higher on Monday as renewed US-Iran strikes highlighted the fragility of their interim peace deal and disrupted shipping through the Strait of Hormuz.

Brent crude rose 0.6 per cent to $72.44 a barrel, while US West Texas Intermediate gained 1.2 per cent to $70.05. The gains followed a sharp 10.6 per cent decline in Brent last week, when increased tanker traffic through the strait had eased supply concerns.

Shipping has since slowed after renewed attacks on vessels, including a Qatar-linked oil tanker, prompted retaliatory strikes by both Washington and Tehran. Analysts warned the market may be underestimating the risk of prolonged supply disruptions, with tanker backlogs, damaged infrastructure and production outages likely to delay a full recovery.

Despite the tensions, the US and Iran agreed on Sunday to halt recent hostilities in the Gulf and resume talks over the Strait of Hormuz, limiting further gains in oil prices.

Meanwhile, Saudi Aramco resumed crude loadings at its Ras Tanura terminal after a nearly four-month suspension. Operations continued despite a helicopter crash at the facility on Sunday that killed 14 people.

Attribution: Reuters