DM Monitoring
WASHINGTON: Oil prices rose on Monday as fading expectations of a U.S.-Iran peace breakthrough and slower tanker traffic through the Strait of Hormuz reinforced geopolitical risk concerns in the market.
Brent crude futures rose as much as 1% to $89.40 per barrel and were last trading up 72 cents at $89.20 by 0229 GMT. The U.S. West Texas Intermediate crude futures rose 44 cents to $82.83 a barrel. Both contracts gained more than 5% last week following attacks on tankers operated by Abu Dhabi National Oil Company in the Hormuz strait and on a Saudi Aramco refinery.
Over the weekend, Iranian Foreign Minister Abbas Araqchi said Iran had not decided to resume talks with the U.S. while U.S. President Donald Trump urged Americans to accept slightly higher gasoline prices while the conflict continues.
“Oil prices have now rebounded almost completely from the lows seen in early August, as hopes for a more permanent resolution between the U.S. and Iran have faded and geopolitical risk premiums have returned to the market,” said Priyanka Sachdeva, head of market insights for Phillip Nova in Singapore. Earlier, Commander of the Islamic Republic of Iran’s Army, Major General Amir Hatami, has issued a stern warning against any military mischief by the United States, saying the only way for the Americans is to leave the region as they would not be allowed to re-establish bases that aim to threaten and attack the Islamic Republic.
At a ceremony honoring journalists on Sunday, General Hatami addressed a number of issues, particularly the persistent American military threat and the recent provocative rhetoric by US President Donald Trump.
Referring to the US defeat and the devastating blows dealt by the Iranian Armed Forces, he said the Americans have effectively been expelled from the region and would no longer be allowed to enter the Persian Gulf, the Sea of Oman, or the Strait of Hormuz.
Everyone should know that the US bases can in no way return to their previous status, and Iran will never allow centers to be established in its neighborhood that aim to threaten the country’s sovereignty and territorial integrity, he explained, emphasizing that the only way forward is for the Americans to leave the region.
The top commander also rebuked the US president for his recent remarks, saying Trump’s backtracking after declaring the Strait of Hormuz part of American territory showed that he remains delusional and is trying hard to portray himself as a winner, but in vain.
