WTI crude oil prices climbed above $70 per barrel on Monday, while Brent crude rose past $73, rebounding modestly from four-month lows as slowing shipping activity through the Strait of Hormuz offset broader optimism over improving geopolitical conditions.
Oil prices had recently fallen back to levels last seen before the conflict began on February 28, as an interim ceasefire between the United States and Iran eased fears of prolonged supply disruptions.
However, fresh concerns over maritime traffic through the world's most important oil shipping route helped support prices at the start of the week.
Strait of Hormuz Traffic Slows
Although commercial vessels continue to navigate the Strait of Hormuz, overall shipping activity has weakened following weekend attacks that damaged confidence among tanker operators.
According to ship-tracking data, marine traffic has improved modestly over the past 36 hours, but transit volumes remain below normal levels. A growing number of vessels are also choosing routes closer to the Omani coastline rather than passing through the center of the strategic waterway, reflecting continued security concerns.
The Strait of Hormuz remains critical to global energy markets, carrying roughly one-fifth of the world's seaborne crude oil exports. Any disruption to traffic can quickly influence oil prices and broader market sentiment.
US and Iran Prepare for Fresh Negotiations
Geopolitical attention has shifted back toward diplomacy after President Donald Trump announced that US and Iranian officials are scheduled to meet Tuesday in Doha, Qatar.
The planned talks follow a volatile weekend in which both sides exchanged military strikes before agreeing to pause direct hostilities and allow maritime trade to continue.
US officials said both countries had agreed to "stand down for now," keeping negotiations on track despite recent military action. Iran has not officially confirmed the meeting, though discussions continue behind the scenes.
Meanwhile, Iranian President Masoud Pezeshkian said the country is expected to receive $6 billion in previously frozen assets held in Qatar, one of the commitments outlined in the broader memorandum of understanding between Washington and Tehran.
Regional Tensions Remain Unresolved
Despite renewed diplomatic efforts, several issues continue to cloud the outlook for global oil markets.
Fighting between Hezbollah and Israel persisted in Lebanon over the weekend despite previous agreements aimed at reducing hostilities. Iran has continued to demand a complete withdrawal of Israeli forces from southern Lebanon as part of any lasting regional settlement.
At the same time, Iranian and Omani officials have begun discussions on the future management of the Strait of Hormuz. Tehran has repeatedly stated that it intends to maintain influence over the strategic waterway even as commercial traffic gradually resumes.
These unresolved geopolitical risks continue to provide underlying support for crude prices despite the broader decline seen since the ceasefire.
Market Watches Diplomacy for Next Move
The modest rebound in WTI and Brent reflects a market balancing improving diplomatic prospects against lingering risks to global energy supplies.
While renewed peace talks have helped reduce fears of another major supply shock, traders remain cautious until clearer progress is made on Iran's nuclear program, regional security arrangements, and the long-term reopening of the Strait of Hormuz.
For now, investors appear to be waiting for the outcome of Tuesday's negotiations in Doha, with any signs of a lasting agreement likely to shape the next major move in crude oil prices.
