DTN Oil Update
Oil Futures Mixed as Traders Assess Mideast Developments
HOUSTON (DTN) -- Oil futures were mixed Monday as investors assessed competing signals from the Middle East -- an escalating exchange of attacks between the U.S. and Iran -- against reports that both countries could enter diplomatic negotiations toward a temporary ceasefire.
Early Monday, oil futures dropped following the comments of the Iranian Foreign Ministry signaling Tehran was open to returning to the negotiating table, fueling optimism that diplomatic efforts could produce a 10-day
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ceasefire to allow for new talks.
The decline proved short-lived after Yemen's Iran-backed Houthi militia announced it would impose maritime navigation ban on Saudi Arabia, reigniting concerns about global supply disruptions. Houthi attacks on commercial vessels between late 2024 and 2025, sharply reduced traffic in the Suez Canal, forcing shippers to reroute around the Cape of Good Hope. Attacks from Yemen against shipping in the region could jeopardize millions of barrels per day of crude oil exports that have been rerouted to ports on the Red Sea.
Oil flows from the Middle East have already plummeted with the ceasefire
collapse. Ship tracking data showed that only four vessels transited the strait Sunday. During the U.S.-Iranian truce, following the initial wave of leaving laden tankers, an average of 20 to 30 vessels per day traversed the chokepoint, compared to a rate of more than 120 per day before the outbreak of the war on Feb. 27.
Separately, the U.S. Energy Information Administration has reported no crude imports from Iraq or Saudia Arabia in recent weeks, reflecting the disruption caused by the renewed blockade of the Strait of Hormuz.
The NYMEX WTI futures contract for August delivery rose $0.35 to $82.84 per barrel (bbl), while the ICE Brent futures contract for September delivery increased $0.60 to $88.70 bbl.
Front-month NYMEX ULSD futures for August delivery rose $0.0420 to $4.1066 gallon, and front-month RBOB futures edged down $0.0062 to $3.3865 gallon.
The U.S. Dollar Index strengthened by 0.174 points to 100.76 against a basket of foreign currencies.
