Oil prices fell in choppy trading on Monday as investors awaited clarity on talks between the U.S. and Iran and remained cautious about sustained supply losses caused by shipping disruptions.
Brent crude futures (LCOc1) fell 64 cents, or 0.6%, to $108.39 a barrel at 1109 GMT. U.S. West Texas Intermediate (CLc1) crude futures were down 1.2%, or $1.33, at $110.21 per barrel.
Price movements in Asian trading on Monday were overshadowed by an 11% surge in WTI and an 8% rise in Brent during the previous session on Thursday - the largest absolute price increases since 2020.
The U.S. and Iran received a framework plan to end hostilities, but Iran rejected immediately reopening the Strait of Hormuz after President Donald Trump threatened to rain "hell" on Tehran if it did not reach a deal by the end of Tuesday.
Iran also said it had formulated its positions and demands in response to recent ceasefire proposals conveyed via intermediaries.
The Strait of Hormuz, which carries oil and petroleum products from Iraq, Saudi Arabia, Qatar, Kuwait and the United Arab Emirates, remains largely closed due to Iranian attacks on shipping following the outbreak of war on 28 February.
Some vessels, however - including an Omani-operated tanker, a French-owned container ship and a Japanese-owned gas carrier - have passed through the Strait of Hormuz since Thursday, according to shipping data, reflecting Iran’s policy of allowing passage to vessels from countries it considers more friendly.
"The market is trying to realise what to expect going forward. The most important headline this weekend has been that some ships passed through the Strait," said SEB Research analyst Ole Hvalbye.
Hvalbye also noted that Europe continued to lose physical barrels and refined products to Asia due to tightening market conditions.
Supply disruptions in the Middle East have prompted refiners to seek alternative crude sources, particularly physical cargoes from the U.S. and Britain’s North Sea. Spot premiums for U.S. West Texas Intermediate crude have surged to record highs amid competition between Asian and European refiners.
Indian refiners have also postponed maintenance shutdowns at their facilities to meet domestic fuel demand.
On Sunday, OPEC+, comprising members of the Organization of the Petroleum Exporting Countries and allies including Russia, agreed to a modest output increase of 206,000 barrels per day for May.
However, the decision is expected to remain largely theoretical, as several key producers in the group are unable to raise output due to the war.
Saudi Arabia also set the official selling price of its May Arab Light crude to Asia at a record premium of $19.50 a barrel above the Oman/Dubai average, up $17 from the previous month, according to Aramco.
Meanwhile, Russian supply has recently been disrupted by Ukrainian drone attacks on export terminals in the Baltic Sea. Media reports on Sunday said the Ust-Luga terminal resumed loadings on Saturday after several days of disruption.
Exports from the Black Sea port of Tuapse are expected to rise to 794,000 metric tonnes in April, up 8.7% on a daily basis from 755,000 metric tonnes planned for March, according to two traders and Reuters calculations.
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U.S. President Donald Trump announced on Tuesday that he had agreed to a two-week ceasefire with Iran, less than two hours before his deadline for Tehran to reopen the Strait of Hormuz or face U.S. attacks on its civilian infrastructure.
Financial markets experienced a monumental shift as crude valuations tumbled and equity indices surged worldwide.
Iran’s Supreme National Security Council (SNSC) announced on Wednesday that ceasefire negotiations with the U.S. are scheduled for Friday (10 April) in Islamabad, stressing that it will enter into two weeks of talks “out of total distrust”.
Gulf states including Saudi Arabia and the UAE are exploring a $2,500 Ukrainian-designed interceptor drone as a cheaper way to counter Iranian attacks that are depleting stockpiles of U.S.-made missiles, a Japanese firm marketing the technology overseas told Reuters.
U.S. President Donald Trump threatened Iran's "whole civilisation" on Tuesday in a post on social media. Meanwhile, the UN failed to reach an agreemement on a resolution aimed at reopening the Strait of Hormuz, after China and Russia used their vetoes.
Lebanon’s Hezbollah said it had stopped firing on northern Israel and Israeli forces on Wednesday as part of a two-week ceasefire in the Middle East brokered between the United States and Iran. However, a Hezbollah lawmaker warned that the pause could collapse if Tel Aviv does not adhere to it.
Pakistan’s Prime Minister Shehbaz Sharif said Iran and the United States, along with their allies, have agreed to an immediate two-week ceasefire covering all areas, but Israel says the deal excludes Lebanon. Tel Aviv says the U.S. is committed to achieving shared goals in upcoming negotiations.
The four astronauts aboard Artemis II briefly lost contact with Earth while flying behind the Moon, then regained it during a dramatic lunar far-side flyby.
U.S. Vice President JD Vance’s visit to Hungary days before the 12 April parliamentary election has underscored Washington’s open support for Prime Minister Viktor Orbán at a critical point in his political career.
China and Russia vetoed a United Nations Security Council resolution on Tuesday aimed at coordinating defensive efforts to protect commercial shipping in the Strait of Hormuz, leaving no agreed international framework for securing the vital route.
International air travel remains severely disrupted despite the ceasefire between the U.S. and Iran announced on Wednesday (8 April), leaving many passengers unable to reach their destinations after conflict-related cancellations at major Middle Eastern hubs including Dubai, Doha and Abu Dhabi.
Oil and gas tankers remained stranded in the Strait of Hormuz on Wednesday (8 April), as shipping firms sought clarity on vessel passage despite a ceasefire agreement between the U.S. and Iran.
Lebanon’s Hezbollah said it had stopped firing on northern Israel and Israeli forces on Wednesday as part of a two-week ceasefire in the Middle East brokered between the United States and Iran. However, a Hezbollah lawmaker warned that the pause could collapse if Tel Aviv does not adhere to it.
World leaders have welcomed a two-week ceasefire between Iran and the U.S. announced on Wednesday, following a tense day marked by threats from U.S. President Donald Trump to wipe out Iranian civilisation if a deal was not reached.
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