Oil prices rose nearly 3% on Monday as US-Iran peace talks stalled and global supply concerns deepened. Brent crude climbed to $108.36 per barrel, reaching a three-week high. The increase reflects tightening supply conditions and geopolitical uncertainty.
West Texas Intermediate also gained, rising to $96.85 per barrel as market sentiment strengthened. Both benchmarks recorded significant weekly gains earlier, driven by escalating conflict in the Middle East. Analysts say supply disruptions have intensified price pressures.
Read more: Oil prices rise amid Middle East tensions
Tensions remain high as shipments through the Strait of Hormuz continue to face restrictions. Reduced oil flows have contributed to global supply shortages. Market experts warn that millions of barrels per day are currently affected by the ongoing conflict.
Diplomatic efforts between the United States and Iran have shown little progress, further dampening hopes of resolution. Officials from both sides remain divided over key issues, including nuclear concerns and shipping access. The uncertainty has added volatility to global energy markets.
Read more: Oil prices fall after diplomatic developments led by Pakistan
Analysts expect oil prices to remain sensitive to geopolitical developments in the coming weeks. Investment banks have revised forecasts upward, citing continued supply risks and tight market conditions.