Oil prices dip as Iran hints at possible U.S. talks amid ongoing strikes
Brent and U.S. crude fell modestly on Monday after Iran's foreign ministry said negotiations with the United States could be explored, while U.S. forces carried out a ninth night of strikes on Iranian targets.
Oil prices slipped on Monday, wiping out earlier gains after Iran's foreign ministry indicated that dialogue with the United States could be pursued in line with national interests. Brent crude for September delivery fell 0.4% to $87.77 a barrel, and U.S. West Texas Intermediate for August delivery dropped 0.9% to $81.74.
"Negotiations with the United States could be pursued based on national interests," Iran's foreign ministry spokesman Esmail Baghaei told reporters, noting that intermediaries were still exchanging messages amid the latest U.S. strikes and recent American military casualties.
The price movement follows the U.S. military's confirmation of a third American service member killed in recent operations and the recovery of unidentified remains near the site of an Iranian attack in Jordan that previously killed two U.S. personnel and left another missing. U.S. Central Command announced that American forces had completed a ninth consecutive night of strikes against Iranian targets, aiming to degrade capabilities used to attack commercial vessels and civilian mariners in the Strait of Hormuz.
The renewed hostilities have raised concerns about the security of the Strait of Hormuz, a chokepoint that handles roughly 20% of global oil traffic. U.S. strikes have targeted Iranian coastal surveillance, air-defense systems, maritime assets, and missile and drone storage facilities, as well as Islamic Revolutionary Guard Corps units linked to a July 17 attack on U.S. personnel in Jordan.
Iran's Revolutionary Guard, citing a semi-official news agency, asserted that it maintains full control over the strait and pledged that "not a single drop of oil, gas, or chemical fertilizer" would pass through the waterway.
Market commentator Sen, speaking on CNBC's "Access Middle East," suggested that price spikes to triple-digit levels were possible, attributing recent moves to short-covering activity as the market reacted to the reopening of Hormuz. He added that many investors remained complacent, noting that past episodes had not pushed prices above $100 and that attention was now focused on other factors such as artificial intelligence.