Oil Settles Up On US-Iran Strikes; Cautious Hopes for Shipping Cap Gains

• Oil prices settled more than 1% higher on Monday, June 29, 2026, after renewed U.S. and Iranian strikes underscored the fragility of their interim peace deal. Brent crude futures gained 1.61% to US$73.15 per barrel, while U.S. West Texas Intermediate crude rose 2.2% to US$70.75. However, cautious hopes that energy shipping will continue to recover through the Strait of Hormuz limited gains.
• Iranian and U.S. technical teams are expected to meet in Doha in the coming days to discuss implementation of the interim peace deal, after the tit-for-tat weekend strikes threatened to derail the accord. Iran also said it will try to obstruct vessels outside designated shipping lanes, adding to uncertainty around navigation through the waterway.
• Brent crude fell 10.6% last week, marking its third consecutive weekly decline, after crude shipments through the Strait of Hormuz rose to their highest level since the U.S.-Israeli war on Iran began in late February.
• According to energy consultancy firm Gelber & Associates, outbound Persian Gulf crude exports are quickly rebounding to at least 75% of pre-war levels. However, analysts cautioned that traffic through the Strait is still far from fully recovered, with sea mines, insurance constraints and security risks weighing on shipping activity.
• Middle East producers are pushing ahead with loading oil and LNG, despite fresh ship attacks and renewed strikes. Saudi Aramco resumed crude oil loadings on Friday, June 26, 2026, at its Ras Tanura terminal, after they were halted for nearly four months.
• While crude exports and shipping through the Strait of Hormuz are recovering, ongoing security risks, sea mines and insurance constraints continue to prevent a full return to normal operations, limiting the decline in oil prices.

(Source: Reuters)