Oil hangs onto gains as US-Iran peace talks stall, Hormuz shipping slows

NEW DELHI/SINGAPORE: Oil prices were mostly steady on Monday, maintaining gains made last week, as prospects for a lasting US-Iran peace deal appear increasingly remote and fears of supply disruptions ​in the Strait of Hormuz are ever present.

Brent crude futures were unchanged ​at $88.55 by 0128 GMT, while US West Texas Intermediate crude futures ⁠slipped 14 cents to $82.26 a barrel.

Both contracts gained more than 5% last week ​following attacks on tankers operated by Abu Dhabi National Oil Company in the Hormuz ​strait and on a Saudi Aramco refinery.

Over the weekend, Iranian Foreign Minister Abbas Araqchi said Iran had not decided to resume talks with the US while US President Donald Trump urged Americans to ​accept slightly higher gasoline prices while the conflict continues.

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“Oil prices have now rebounded almost ​completely from the lows seen in early August, as hopes for a more permanent resolution between ‌the ⁠US and Iran have faded and geopolitical risk premiums have returned to the market,” said Priyanka Sachdeva, head of market insights for Phillip Nova in Singapore.

“However, I see limited upside from here unless we get clear evidence of renewed aggression in ​the Strait of Hormuz, ​particularly material damage ⁠to tankers or oil infrastructure,” she said.

Shipping through the Strait of Hormuz slowed over the weekend, data showed on Monday, following attacks ​on tankers. Five commodity vessels transited the strait on Saturday, ​with none ⁠registered for Sunday, shiptracking data from Kpler showed, versus 31 for the prior weekend.

The United Arab Emirates accused Iran of attacking a third vessel operated by ADNOC that was ⁠transiting ​the strait on Friday, the Emirati state news agency ​WAM reported, after blaming it for two other incidents involving ADNOC vessels in the strait on Thursday ​evening.