Oil Prices Settle Higher as Hormuz Supply Concerns Persist

By Adedapo Adesanya

Oil prices settled higher on Monday on worries about ongoing supply ​disruptions as Qatari mediators pledged to hold talks with the United States and Iran in hopes of a peace deal to reopen the Strait of ‌Hormuz.

Brent futures chalked up 96 cents or 0.9 per cent to settle at $105.28 a barrel, while US West Texas Intermediate (WTI) crude rose 19 cents or 0.2 per cent to $92.60 per barrel.

Qatari mediators are expected to hold separate talks with Iranian Foreign Minister Abbas ​Araqchi in New York and with the US side on Monday or Tuesday.

Reuters reported that the discussions are expected to focus on ​an amended version of a seven-day proposal that Iran presented last week on the sidelines of the United Nations General Assembly.

Over the weekend, Iran insisted that only diplomacy can solve its conflict with the US and Israel, after President Trump rejected the Iranian proposal to reopen the ​Strait of Hormuz and end hostilities.

President Trump denied on Monday an Axios report that said he’s considering offering Iran sanctions relief in exchange for progress on the nuclear issue, calling it a “hoax.” It was reported that the US is willing to give Iran sanctions relief and release Iranian frozen funds in return for concrete Iranian steps regarding the nuclear programme.

Meanwhile, despite the worries, crude oil exports from key Middle East producers rebounded in September to 12.8 million barrels per day, the highest since the war started in February, preliminary data from Kpler showed on Monday, as Saudi ​Arabia and the United Arab Emirates (UAE) boosted exports.

The rebound came after a recovery in shipments via the Strait of Hormuz, which were set to hit about 7.4 million barrels per day this month, ​the data showed.

Saudi Arabia diverted exports from the Red Sea port of Yanbu to its eastern Ras Tanura port following attacks that damaged its East-West pipeline.

Saudi Arabia has been exporting crude at a daily rate of 5.4 million barrels this month, with exports from the Ras Tanura port on the Persian Gulf flowing at a rate of 3.6 million barrels daily, which is almost on par with the country’s daily average for 2025.

About a fifth of the world’s oil supply, roughly 20 million barrels per day, passed through the Strait of Hormuz before the US and Israel attacked Iran in February.