Oil prices rose on Monday after several days of "tit-for-tat" strikes between the US and Iran, which highlighted the fragility of their temporary peace agreement and again slowed the delivery of energy supplies through the Strait of Hormuz, UNN reports, citing Reuters.
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Brent crude futures rose 58 cents, or 0.8%, to $72.57 a barrel as of 02:07 GMT (05:07 Kyiv time), while US West Texas Intermediate crude stood at $70.11 a barrel, up 88 cents, or 1.3%.
"The oil market still has many risks. Despite this, participants seem... to be focusing on what the further recovery of oil supplies will mean for the global balance," ING analysts said in a note on Monday.
"This complacency is strange and clearly leaves significant upside risk if the recovery of supplies proves slow," the analysts noted.
Last week, Brent crude fell 10.6%, its third weekly decline, after oil shipments through the strait last week rose to their highest level since the start of the US and Israel's war against Iran in late February.
However, traffic has since slowed following a resumption of attacks on vessels in the strait from Thursday, including a Qatar-linked oil tanker, which triggered strikes by the US and Iran, marking the "worst" escalation since the temporary peace agreement was signed.
Capping oil price gains, Iran and the US agreed to halt recent hostilities in the Persian Gulf and resume talks over their dispute regarding the Strait of Hormuz, a US official said on Sunday.
The US and Iran have agreed to an immediate cessation of mutual attacks - media29.06.26, 07:31
"The market will likely reassess its assumption of a rapid recovery of oil supplies from the Persian Gulf," ANZ analysts said in a note.
Saudi oil giant Aramco resumed oil loading on Friday at its Ras Tanura terminal, west of the Strait of Hormuz, after a nearly four-month halt, as oil producers increased output and exports ahead of the temporary agreement.
Loading continued even after a company-owned helicopter crashed at Ras Tanura on Sunday, killing 14 people. The cause of the crash is unknown.
In Saudi Arabia, an oil company helicopter crashed – 14 people died28.06.26, 15:17
"Physical supplies are constrained by tanker delays, damaged infrastructure, and production shutdowns. It may take the rest of the year before supply approaches pre-conflict levels," ANZ analysts said.