Oil prices experienced a slight increase during volatile trading as market concerns resurfaced regarding the prospects of US-Iran peace negotiations, which could potentially lead to the opening of the Strait of Hormuz. WTI crude rose by 3%, settling above $108 per barrel, while Brent crude closed near $112 per barrel. The price increase followed assessments from both the US and Iran that the latest proposals were insufficient to end the conflict. However, oil prices partially retreated in after-hours trading after US President Donald Trump announced the cancellation of a planned attack on Iran scheduled for Tuesday, citing requests from other Middle Eastern countries. Morgan Stanley stated last week that the oil market is "racing against time," noting that factors which previously helped curb price surges from the Iran conflict might become ineffective if the Strait of Hormuz remains blocked through June. The International Energy Agency (IEA) reiterated on Monday that global oil inventories are declining rapidly. Earlier in the session, prices had dipped following a report from Iran's semi-official Tasnim News Agency suggesting the US had proposed lifting sanctions on Iranian oil sales before a final agreement is reached. However, a US official, who requested anonymity due to the sensitivity of the matter, denied the report without providing further details. Simultaneously, the US government issued another waiver permitting the sale of Russian crude oil and petroleum products already loaded onto tankers. July WTI crude rose by 3.1%, settling at $108.66 per barrel. The June contract expired on Tuesday. July Brent crude increased by 2.6%, settling at $112.10 per barrel.
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