Crude climbs as US-Iran strikes renew Hormuz shipping fears
Crude oil prices climbed on Monday, June 29, 2026, after renewed tit-for-tat strikes between the United States and Iran slowed energy shipping in the Strait of Hormuz and raised doubts about a fragile interim peace deal signed on June 17. Brent futures moved higher as traders repriced Gulf supply risk. Benchmarks reversed momentum from earlier in the week, when rising Gulf flows had pushed prices toward pre-war levels.
Key Takeaways
- Brent crude gained about 0.7% to 0.9% on Monday, with August futures near $73.21 a barrel by early GMT trading.
- Weekend strikes followed attacks on commercial vessels in the Strait of Hormuz, including the Panama-flagged Kiku tanker carrying more than 2 million barrels of crude.
- Iran launched missiles and drones at US military sites in Kuwait and Bahrain; the US military struck Iranian targets in response.
- Prices had recently dipped below pre-war levels as tanker traffic through Hormuz picked up, before renewed violence slowed flows again.
- Washington and Tehran agreed late Sunday to halt recent hostilities and resume negotiations, with talks reportedly set for Doha on Tuesday.
Why did crude prices rise on Monday?
Oil markets reacted to escalating US-Iran hostilities that again threatened one of the world's most important energy chokepoints. According to Reuters, Brent crude futures climbed 50 cents, or 0.69%, to $72.49 a barrel by late Sunday GMT, while US West Texas Intermediate rose 73 cents, or 1.05%, to $69.96.
Al Jazeera reported Brent's August contract up about 0.9% to $73.21 as of 03:30 GMT Monday. Analysts said the market had nearly unwound its war premium before Thursday's attack on a commercial vessel served as a reality check, and weekend exchanges compounded those concerns.
What happened in the Strait of Hormuz over the weekend?
The flare-up followed days of strikes tied directly to shipping in the narrow waterway, which in peacetime carries about one-fifth of global oil and liquefied natural gas trade. US Central Command said it conducted strikes on Friday and Saturday after Iranian attacks on commercial vessels, including a drone strike on the Kiku tanker early Saturday.
Iran's Islamic Revolutionary Guard Corps responded by targeting US military assets in Bahrain and Kuwait. President Donald Trump said Tehran had violated the ceasefire tied to the June 17 memorandum of understanding, which extended a 60-day window to negotiate an end to fighting that began with US-Israeli attacks on February 28.
Had oil already returned to pre-war levels?
Just days earlier, the picture looked very different. The Financial Times reported Brent dipping 1.8% to $72.40 on Thursday—the first time it traded below its pre-war closing price of $72.48 since the conflict erupted. Tanker departures from the Gulf jumped nearly 50% on Wednesday, and US Energy Secretary Chris Wright said 20 million barrels of crude exited the strait in 24 hours aboard 72 ships.
That recovery proved fragile. From Thursday onward, traffic through Hormuz slowed again after renewed attacks, including on a Qatar-linked oil tanker. Brent had fallen 10.6% the prior week—its third weekly decline—as shipments through the strait reached their highest level since the war began.
What happens next for talks and energy flows?
Despite the weekend escalation, multiple outlets reported that US and Iranian officials agreed late Sunday to cease recent attacks in the Gulf and renew negotiations over the Hormuz dispute. Axios cited a senior US official saying talks could resume in Doha on Tuesday.
ING analysts told Reuters that plenty of risk still faces the oil market, even as some participants focus on what a continued recovery in flows would mean for the global balance. For readers tracking how geopolitical shocks ripple through markets and technology supply chains, see more coverage in our Future Tech & AI Wonders section.