Crude oil prices moved higher Monday as tensions in the Middle East intensified. Markets reacted after Iran ruled out any talks to extend the current memorandum of understanding with the United States regarding the Strait of Hormuz.
The agreement, which was signed on June 17, reached its two-month expiration deadline this week. A spokesperson for Iran’s Foreign Ministry stated that the 60-day window for negotiations on the nuclear program is no longer relevant, citing alleged violations of the agreement by the U.S. side.
Energy analysts are monitoring the region closely as Iranian officials suggested a shift toward offensive tactics if diplomatic efforts fail. U.S. crude futures rose 39 cents to $82.79 per barrel, while Brent crude climbed 54 cents to $89.06 per barrel.
This development creates immediate uncertainty for global energy transit through the Strait of Hormuz. With the memorandum now expired and no extension planned, traders are pricing in the risk of further disruption to oil shipments.