Oil Prices Rise as US–Iran Deal Remains Uncertain

Global oil prices moved higher on Monday as hopes for a US–Iran agreement faded, keeping markets on edge and supply concerns in focus.

According to Beyond Time News, Brent crude climbed 1.1% to $109.39 per barrel in early trading. Meanwhile, West Texas Intermediate (WTI) rose 1% to $102.94. The rebound came after both benchmarks dropped sharply in the previous session.

Why Oil Prices Are Rising

The main driver behind the increase is ongoing geopolitical tension. Talks between the United States and Iran continued over the weekend, but no breakthrough emerged. As a result, uncertainty around oil supply persists.

In particular, the situation in the Strait of Hormuz remains critical. This route handles a significant share of global oil shipments. Any disruption here quickly impacts prices.

Analysts say limited oil flows through the strait are pushing prices upward. As long as shipping remains restricted, the market is likely to stay tight.

Shipping Risks Add Pressure

Tensions escalated further after Iran warned US forces against entering the strait. At the same time, reports emerged of a tanker being hit near Fujairah in the UAE, raising fresh security concerns.

Although US President Donald Trump said efforts are underway to help stranded ships, the situation has not fully stabilised. Consequently, oil prices remain above the $100 mark.

Read more:PSX Surges as Oil Prices Ease and Middle East Deal Hopes Lift Sentiment

OPEC+ Output Increase Has Limited Impact

The OPEC+ also announced a production increase of 188,000 barrels per day for June. However, experts believe this move will have limited effect.

Due to ongoing disruptions, much of the additional supply may not reach the market. Therefore, the overall supply outlook remains constrained.

Market Outlook

Oil markets continue to react strongly to geopolitical developments. Without a clear resolution between the US and Iran, prices are expected to stay elevated.

For now, uncertainty dominates. Until supply routes fully stabilise, the risk of further price increases remains high.