COMMODITIES: Oil rises as Strait of Hormuz blockade fears persist
Idag, 13:39
(Alliance News) - Oil prices edged higher on Monday as fears of a prolonged blockade of the Strait of Hormuz continued to weigh on market sentiment.
Brent for July delivery was trading at USD111.71 around midday on Monday, slightly up from USD111.33 on Friday. West Texas Intermediate inched up to USD105.27 from USD104.45.
Oil markets on Monday continued to reassess geopolitical risk in the Gulf, following a spike in volatility last week.
"The rally toward USD120 a barrel reflected, once again, a peak fear scenario, where investors were pricing sustained disruption in the Strait of Hormuz evolving into a prolonged supply shock considering that we're already entering the third month," Pepperstone analyst Ahmad Assiri said.
Iran hit a US warship with two missiles near Strait of Hormuz, Sky News quoted Iranian state media as saying. In response, a senior US official denied that a ship was hit.
Meanwhile, the United Arab Emirates said Iran fired two drones at a tanker affiliated with its state oil company ADNOC in the Strait of Hormuz, condemning the attack.
On Sunday, US President Donald Trump said that "very positive discussions" were under way with Iran on finding a solution to the crisis, and indicated that the US would begin escorting ships through the Strait of Hormuz.
Pepperstone's Assiri said the market is still pricing instability, with oil prices hovering above the USD100 a barrel mark.
Meanwhile, Saudi Arabia, Russia and five other Opec+ countries increased their oil production quota on Sunday in an expected move aimed at demonstrating continuity at the cartel after the shock withdrawal of the United Arab Emirates.
The seven major producers will add "188,000 barrels per day" to their total production quota for June, as part of "their collective commitment to support oil market stability", according to a statement published by Opec+.
"However, this increase is unlikely to be realised, given that 55% of it is expected to come from Persian Gulf producers," ING analysts Warren Patterson and Ewa Manthey said.
The benchmark TTF gas futures contract for delivery in one month rose to EUR46.62 per megawatt hour on Friday from EUR45.76 on Thursday.
Spot gold was quoted at USD4,565.76 an ounce on Monday, down from USD4,573.25 at the same time on Friday. Silver was marginally down at USD73.51 an ounce from USD73.55.
The yellow metal eased on Monday as it faces a stable dollar and rising US Treasury bond yields, BankPro CEO Paolo Broccardo said.
"Ongoing inflation concerns arising from elevated oil prices could continue to push monetary policy expectations toward more caution, lifting yields and weighing on non-yielding assets such as bullion," Broccardo said.
Last week, the US Federal Reserve kept its interest rates unchanged, while officials signalled that the inflationary impact of the high energy prices reduces the scope for interest rate cuts, he said, noting that other major central banks last week also kept monetary policy on hold.
Elsewhere, platinum was priced at USD1,945.54 an ounce on Monday, down from USD1,975.40 on Friday. Palladium fell to USD1,479.21 an ounce from USD1,515.34.
In base metals, the copper price fell to USD12,949.50 per tonne from USD13,015.40, but aluminium firmed to USD3,504.00 from USD3,475.52.
By Artwell Dlamini, Alliance News senior reporter South Africa
Comments and questions to newsroom@alliancenews.com
Copyright 2026 Alliance News Ltd. All Rights Reserved.
COMMODITIES: Oil rises as Strait of Hormuz blockade fears persist
Idag, 13:39
(Alliance News) - Oil prices edged higher on Monday as fears of a prolonged blockade of the Strait of Hormuz continued to weigh on market sentiment.
Brent for July delivery was trading at USD111.71 around midday on Monday, slightly up from USD111.33 on Friday. West Texas Intermediate inched up to USD105.27 from USD104.45.
Oil markets on Monday continued to reassess geopolitical risk in the Gulf, following a spike in volatility last week.
"The rally toward USD120 a barrel reflected, once again, a peak fear scenario, where investors were pricing sustained disruption in the Strait of Hormuz evolving into a prolonged supply shock considering that we're already entering the third month," Pepperstone analyst Ahmad Assiri said.
Iran hit a US warship with two missiles near Strait of Hormuz, Sky News quoted Iranian state media as saying. In response, a senior US official denied that a ship was hit.
Meanwhile, the United Arab Emirates said Iran fired two drones at a tanker affiliated with its state oil company ADNOC in the Strait of Hormuz, condemning the attack.
On Sunday, US President Donald Trump said that "very positive discussions" were under way with Iran on finding a solution to the crisis, and indicated that the US would begin escorting ships through the Strait of Hormuz.
Pepperstone's Assiri said the market is still pricing instability, with oil prices hovering above the USD100 a barrel mark.
Meanwhile, Saudi Arabia, Russia and five other Opec+ countries increased their oil production quota on Sunday in an expected move aimed at demonstrating continuity at the cartel after the shock withdrawal of the United Arab Emirates.
The seven major producers will add "188,000 barrels per day" to their total production quota for June, as part of "their collective commitment to support oil market stability", according to a statement published by Opec+.
"However, this increase is unlikely to be realised, given that 55% of it is expected to come from Persian Gulf producers," ING analysts Warren Patterson and Ewa Manthey said.
The benchmark TTF gas futures contract for delivery in one month rose to EUR46.62 per megawatt hour on Friday from EUR45.76 on Thursday.
Spot gold was quoted at USD4,565.76 an ounce on Monday, down from USD4,573.25 at the same time on Friday. Silver was marginally down at USD73.51 an ounce from USD73.55.
The yellow metal eased on Monday as it faces a stable dollar and rising US Treasury bond yields, BankPro CEO Paolo Broccardo said.
"Ongoing inflation concerns arising from elevated oil prices could continue to push monetary policy expectations toward more caution, lifting yields and weighing on non-yielding assets such as bullion," Broccardo said.
Last week, the US Federal Reserve kept its interest rates unchanged, while officials signalled that the inflationary impact of the high energy prices reduces the scope for interest rate cuts, he said, noting that other major central banks last week also kept monetary policy on hold.
Elsewhere, platinum was priced at USD1,945.54 an ounce on Monday, down from USD1,975.40 on Friday. Palladium fell to USD1,479.21 an ounce from USD1,515.34.
In base metals, the copper price fell to USD12,949.50 per tonne from USD13,015.40, but aluminium firmed to USD3,504.00 from USD3,475.52.
By Artwell Dlamini, Alliance News senior reporter South Africa
Comments and questions to newsroom@alliancenews.com
Copyright 2026 Alliance News Ltd. All Rights Reserved.
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