Oil prices showed minimal movement on Monday as markets evaluated the impact of ongoing geopolitical tensions and potential supply disruptions.
By 06:56 GMT, Brent crude futures increased by $0.76, or 0.7%, reaching $109.79 per barrel, reported Reuters.
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Meanwhile, US West Texas Intermediate (WTI) crude futures decreased by $0.53, or 0.5%, to $111.01 per barrel.
In Asian trading, price moves on Monday were modest compared with Thursday’s rally, when WTI jumped 11% and Brent climbed 8%, their largest one-day gains in absolute terms since 2020.
Tensions escalated over the weekend as US President Donald Trump warned Iran to reopen the strategic Strait of Hormuz or face attacks on Tuesday. Nonetheless, prices remained largely stable.
The strait, vital for oil transport, has been mostly closed due to Iranian activities since the war began in late February.
Negotiations between the US and Iran for reopening the strait were reportedly underway.
Meanwhile, OPEC+ has agreed to a production increase of 206,000 barrels per day for May, although key producers are struggling to meet output targets due to the conflict.
Russian oil supply faced interruptions following Ukrainian drone attacks but resumed loading at its Ust-Luga terminal over the weekend.
In a related development, Bahrain’s state news agency on Sunday reported that a fire at Gulf Petrochemical Industries Company (GPIC) facilities, triggered by an Iranian drone strike, has been contained.
No casualties were reported, and response teams are now evaluating the extent of the damage.
GPIC, a petrochemicals and fertiliser producer, is jointly owned by the Bahraini government, SABIC Agri-Nutrients, and Kuwait’s Petrochemical Industries Company.
Furthermore, Iranian drone strikes targeted multiple sites in Kuwait, with state-owned Kuwait Petroleum Corporation (KPC) reporting fires and extensive physical damage at several operational units, reported Reuters.
KPC said emergency crews were working to bring blazes under control at its affiliates, Petrochemical Industries Company and Kuwait National Petroleum Company.
Earlier, the company had also reported a separate fire at the Shuwaikh oil sector complex, which includes both the oil ministry and KPC’s headquarters, following another drone attack.
The US-Israeli conflict with Iran has now entered its sixth week, as Tehran continues launching attacks on Israel and on Gulf Arab countries that host American military bases.
Meanwhile in Iraq, BP-operated North Rumaila oilfield sustained strikes, injuring three workers but leaving operations unaffected. Drone attacks also targeted areas near Basra, claimed Reuters.
