Oil steadies after Trump signals restraint on Iran, Hormuz risks persist

Business Recorder reported that crude prices showed little movement on Monday after Donald Trump indicated he was unlikely to order further strikes on Iran while negotiations continue. Brent was at $98.35 a barrel, up 3 cents, and US West Texas Intermediate gained 0.5% to $91.30 by 0427 GMT. The relative calm followed a 16% weekly slide in Brent, its largest such decline since the COVID pandemic began.

Shipping incidents in and around the Strait of Hormuz have kept supply risks in view, despite hopes for diplomacy. Iran said five tankers and a tugboat caught fire, while the Houthis claimed an attack on Saudi Aramco offices in Riyadh that caused property damage but no reported injuries. Separately, JPMorgan projected global supply would exceed use by 1.1 million barrels per day in September and 1.4 million in October, citing recovering Middle Eastern flows, higher output elsewhere and soft demand.