Energy hubris
USO•Oil prices rose to nearly $117 a barrel last week after Iranian attacks on tankers near the Strait of Hormuz, then Brent fell about $2 on Monday. Markets are watching diplomatic talks in Tehran as uncertainty over the Iran war continues.
1. Oil market swings
Oil prices surged to nearly $117 a barrel last week, their highest level since April, after Iranian attacks on tankers around the Strait of Hormuz rattled traders. Brent crude was down about $2 on Monday morning, while oil exports from the Middle East remained relatively strong.
2. Diplomatic uncertainty
Markets are watching a Monday meeting in Tehran between Iranian leaders and senior representatives of Saudi Arabia, Turkey and Pakistan. The talks are expected to focus on containing the worsening conflict in Yemen, where the Iranian-backed Houthi movement has claimed multiple attacks on energy infrastructure. U.S. President Donald Trump said he was weighing whether to finish the Iran war or make a deal.
3. Other energy developments
Saudi Arabia plans to store crude oil at Singapore's Jurong Rock Caverns from the second half of 2027. Shares in Galp Energia fell 7.5% on Monday after it said talks with Spain's Moeve to combine their refining, chemicals and fuel retail businesses had collapsed.
