Global oil prices dipped marginally on Monday, but remained above the $100 mark as uncertainty around the Strait of Hormuz continued to keep the market on edge.
Brent crude was trading at $108.11 per barrel in early hours, slipping just 6 cents after a sharp fall in the previous session. US West Texas Intermediate also moved lower, dropping 44 cents to $101.50 per barrel. Both benchmarks had already recorded notable losses on Friday.
The slight decline came after US President Donald Trump said Washington would take steps to help ships stuck in the Strait of Hormuz, a key route for global oil shipments. His remarks offered some relief to traders concerned about supply disruptions.
Still, the broader picture remains uncertain.
Analysts say prices are holding firm due to ongoing tensions in the Gulf and limited oil flows through the busy shipping lane. Priyanka Sachdeva, an analyst at Phillip Nova, noted that the market continues to be supported by supply concerns and geopolitical risks.
She said oil could stay at elevated levels unless there is a clear and lasting solution that restores normal movement through the Strait of Hormuz.
Talks continue but no breakthrough yet
Efforts to ease tensions between the US and Iran have yet to produce a breakthrough. Discussions continued over the weekend, with both sides reviewing each other’s positions.
Trump has been pushing to secure a nuclear deal with Tehran. However, Iran has indicated it wants to delay such talks until the ongoing conflict settles and restrictions on Gulf shipping are lifted first.
This deadlock has added to concerns about supply, as the Strait of Hormuz handles a significant share of the world’s oil trade. Any disruption in the region can quickly affect global prices.
OPEC+ output increase seen as limited relief
Meanwhile, the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, announced a modest increase in output for June.
The group plans to raise production targets by 188,000 barrels per day for seven member countries. This marks the third straight monthly increase. However, the rise is similar to May’s adjustment, excluding the United Arab Emirates, which exited OPEC at the start of the month.
Despite the planned increase, the impact on supply may remain limited. Ongoing tensions in the Gulf are expected to continue affecting shipments, meaning actual output may fall short of targets.
For now, the market appears to be balancing between short term relief signals and deeper concerns about supply risks, keeping oil prices elevated.
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