An oil tanker and cargo ship remain anchored off the coast of Port Sultan Qaboos in Muscat, Oman, on June 21, 2026. The Strait of Hormuz, a key shipping route for oil and gas in the region, has been effectively closed since war broke out between the United States and Iran in late February. On Sunday, U.S. Vice President J.D. Vance arrived in Switzerland for high-level talks with an Iranian delegation as the two countries seek to clarify terms for ending the war.
Elke Scoliers | Getty Images News | Getty Images
Oil prices were mixed on Monday after new military attacks between the US and Iran over the weekend reignited concerns about crude supplies from the Middle East.
US West Texas Intermediate futures rose 0.4% to $69.52 per barrel, briefly exceeding $70, but the gains narrowed. WTI fell below $70 on Friday for the first time since February 27, the day before the Iran war began.
Meanwhile, international benchmark Brent crude oil futures fell 0.1% to $71.90.
The move comes after clashes between the US and Iran threatened to derail negotiations aimed at ending the conflict. U.S. officials said both countries would suspend hostilities and allow commercial ships to freely pass through the strategic Strait of Hormuz.
A U.S. official told CNBC on Sunday that “technical discussions will continue on all areas under the memorandum of understanding.”
“For the time being, there will be a cease-fire on both sides and ships will be able to sail freely,” the official said.
On Saturday, the US military struck a number of targets in Iran after a commercial tanker was reportedly hit by a projectile in the Strait of Hormuz. Iran’s neighbors Kuwait and Bahrain also reported incoming missiles and drones overnight.
Following the renewed violence, US President Donald Trump on Sunday warned Iran of catastrophic consequences.
President Trump wrote on Truth Social: “US aircraft just attacked Iranian missile and drone storage sites and coastal radar facilities in violation of the ceasefire agreement!”
“The day may come when we will no longer be able to maintain reason and we will be forced to carry out militarily the work we have successfully begun. Then the Islamic Republic of Iran will no longer exist!” he added.
U.S. Central Command announced early Sunday that its warplanes had struck 10 Iranian military targets in and near the Strait of Hormuz in retaliation for a drone attack on the Panamanian-flagged tanker M/T Kiku. Centcom said late Saturday that the ship was transiting the strait carrying more than 2 million barrels of crude oil.
Market complacency?
ING strategists said energy market participants appear to be too optimistic about the timeline for restoration of oil supplies in the Persian Gulf.
ING’s Warren Patterson and Ewa Muncy said in a research note published Monday that last weekend’s developments highlighted the risks that the oil market still faces.
“Yet, participants appear to be ignoring these developments and instead focusing on what a continued recovery in oil spills means for the global balance,” Patterson and Manthey said.
“This complacency is strange, and clearly significant upside risks remain if supply recovery proves slow or if we see a significant re-escalation. While the oil market is technically in oversold territory, momentum still appears to be to the downside,” he added.
— CNBC’s Azhar Sukri and Garrett Downs contributed to this report
