Oil retreats from $90 as Iran signals openness to U.S. talks

Oil prices reversed earlier gains on Monday after Iran said negotiations with the United States could be pursued if they served the country’s national interests.

Brent crude fell slightly to around $87.96 per barrel after earlier reaching $91.42, its highest level since June 11. U.S. West Texas Intermediate crude dropped to approximately $81.99 after also reaching a one-month high.

Iranian Foreign Ministry spokesperson Esmail Baghaei said intermediaries had continued exchanging messages with Tehran despite renewed U.S. strikes and mounting American military casualties.

His remarks provided some relief to markets concerned that escalating fighting could further disrupt shipments through the Strait of Hormuz, one of the world’s most important energy corridors.

Fighting Intensifies Around Hormuz

The United States completed a ninth consecutive night of strikes against Iranian targets, including military command centres, coastal surveillance and air-defence systems, maritime assets and missile and drone facilities.

The latest operations followed the deaths of three U.S. service members in separate incidents in Jordan and northern Iraq. Unidentified remains were also recovered at the Jordanian base where another American had been reported missing.

The recent deaths raised the number of U.S. military personnel killed since the war began to 17, with more than 420 wounded.

Iran’s Revolutionary Guard claimed that two oil tankers had exploded and become immobilized while attempting to cross the southern route through the Strait of Hormuz. The claim could not immediately be independently verified.

Only four vessels crossed the strait on Sunday, compared with eight the previous day, according to shipping data cited by Reuters. The waterway normally carries roughly one-fifth of global oil supplies.

Oil Could Exceed $100

Amrita Sen, founder and research director at Energy Aspects, warned that the combination of sharply reduced shipping through Hormuz and depleted global inventories could push oil above $100 per barrel.

She said some investors remained overly relaxed about the threat despite the latest price increases and continuing military escalation.