Oil prices slipped on Monday, paring early gains after U.S. President Donald Trump called on other countries to help safeguard the Strait of Hormuz, a vital artery for global oil and gas shipments.
Brent crude futures fell 24 cents, or 0.23%, to $102.90 a barrel by 0049 GMT after settling $2.68 higher on Friday.
U.S. West Texas Intermediate crude slipped $1.07, or 1.08%, to $97.64 a barrel, after gaining nearly $3 in the previous session.
Both contracts have surged more than 40% this month to their highest levels since 2022 after the U.S.-Israeli attacks on Iran prompted Tehran to halt shipping through the Strait of Hormuz – choking off a fifth of global oil supply in the biggest disruption ever.
President Trump said on Sunday he is demanding that other countries help protect the critical energy gateway, adding that Washington is in talks with several nations about policing it. lane.
The U.S. is also in contact with Iran, Trump said, but expressed doubt that Tehran is prepared for serious negotiations to end the conflict.
STRIKES ON KHARG ISLAND, FUJAIRAH
Over the weekend, Trump threatened further strikes on Iran’s Kharg Island oil export hub after hitting military targets over the weekend, drawing a defiant response of more retaliation from Tehran. Kharg Island handles about 90% of Iran’s oil exports.
Iranian drones hit a key oil terminal in Fujairah in the United Arab Emirates shortly after the attacks on Kharg. Oil loading operations at Fujairah have since resumed, four sources said, but it was unclear if the operations were back to normal.
Fujairah, outside the Strait of Hormuz, is the outlet for about 1 million barrels per day of the UAE’s flagship Murban crude oil – a volume equal to about 1% of world demand.
“The U.S. is weighing high-risk ground options including raiding nuclear sites for Iran’s enriched uranium, seizing the Kharg Island oil hub, and occupying southern Iran to protect the Strait of Hormuz,” SEB analyst Erik Meyersson said in a note.
“All of these imply significant escalation and require a tolerance for substantially higher risk.”