Oil prices fall on Monday

Oil prices fell on Monday after rising to near six-month highs last week, as hopes of easing US-Iran tensions offset concerns over continued attacks on Saudi Arabia and disruptions to regional oil supplies.

Brent crude futures fell $2.21, or 1.89 per cent, to $114.51 per barrel, while US West Texas Intermediate (WTI) crude declined $2.23, or 2.16 per cent, to $101.04 by 0426 GMT.

Brent rose 6 per cent last week, while WTI gained 2.3 per cent, following Houthi attacks in Saudi Arabia that heightened concerns over energy supplies.

Qatari mediators travelled to Tehran on Sunday as part of efforts to de-escalate regional tensions in coordination with the United States. However, Iran-backed Houthis said they had targeted an airport and oil facilities in Saudi Arabia on Saturday, while Riyadh reported intercepting additional missiles and drones on Sunday.

Market volatility is expected to remain elevated amid uncertainty over potential further US strikes on Iran and continued disruptions to commercial shipping through the Strait of Hormuz and the Bab el-Mandeb Strait.

Saudi Aramco is also set to begin storing crude oil in Singapore in the second half of 2027 to strengthen its regional supply chain resilience, according to the energy ministers of Saudi Arabia and Singapore.

International Energy Agency Executive Director Fatih Birol said on Monday that energy markets in 2027 were unlikely to return to pre-war conditions.