Oil Prices Rise as Hormuz Tensions Fuel Supply Concerns

PUKMEDIA

Oil prices.

Oil prices edged higher on Monday, 29 June 2026, after renewed exchanges between the United States and Iran underscored the fragility of the temporary agreement aimed at ending hostilities and once again disrupted energy shipments through the Strait of Hormuz.

Brent crude futures rose by 58 cents, or 0.8 per cent, to $72.57 a barrel by 02:07 GMT, while US West Texas Intermediate (WTI) crude gained 88 cents, or 1.3 per cent, to $70.11 a barrel.

"There are still many risks facing the oil market," analysts at ING said in a research note. "However, market participants appear to be focusing on what a continued recovery in oil flows could mean for the global supply balance."

Despite Monday's gains, Brent crude fell 10.6 per cent last week, marking its third consecutive weekly decline. The drop came after oil shipments through the Strait of Hormuz reached their highest level since the outbreak of the US-Israeli conflict with Iran in late February.

However, shipping traffic slowed again following renewed attacks on vessels in the strategic waterway from Thursday onwards, including an oil tanker linked to Qatar. The incidents prompted military strikes by both the United States and Iran, representing the most serious escalation since the two sides reached an interim agreement to halt the conflict.

A US official said on Sunday that Washington and Tehran had agreed to suspend the latest round of hostilities in the Gulf and resume negotiations over their dispute concerning the Strait of Hormuz, helping to limit further increases in oil prices.

Meanwhile, Saudi Aramco has resumed crude loading operations at Ras Tanura, west of the Strait of Hormuz, after a suspension lasting nearly four months. The restart comes as oil producers increase production and exports following the temporary agreement.

Loading operations continued despite a helicopter crash at Ras Tanura on Sunday that killed 14 people. The cause of the accident has not yet been determined.


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