Ammon News - Oil prices were up more than 1% on Monday as peace talks ‌between the U.S. and Iran stalled while shipments through the Strait of Hormuz remained limited, keeping global oil supplies tight.

Brent crude futures rose $1.35, or 1.3%, to $106.68 a barrel by ​0453 GMT, retreating from early session gains of over $2 a barrel. ​U.S. West Texas Intermediate was at $95.35 a barrel, up 95 cents, ⁠or 1%.

Last week, Brent and WTI gained nearly 17% and 13%, respectively, ​the biggest weekly gains since the start of the war.

Hopes of reviving peace ​efforts receded during the weekend when U.S. President Donald Trump scrapped a planned trip to Islamabad by his envoys Steve Witkoff and Jared Kushner, even as Iranian Foreign Minister Abbas ​Araqchi arrived in Pakistan.

"President Trump's recent post on Truth Social, urging to shoot ​and kill any Iranian boat laying mines in the Strait of Hormuz, alongside his claims ‌of ⁠having full control over Hormuz, has continued to fuel elevated war premiums," said Priyanka Sachdeva, analyst at Phillip Nova.

Tehran has largely closed the strait while Washington has imposed a blockade of Iran's ports. Traffic through the Strait of Hormuz ​remained limited, with ​just one oil ⁠products tanker entering the Gulf on Sunday, shipping data from Kpler showed.

Goldman Sachs raised its oil price forecasts for the fourth ​quarter to $90 a barrel for Brent crude and $83 for ​WTI, citing ⁠reduced output from the Middle East.

"The economic risks are larger than our crude base case alone suggests because of the net upside risks to oil prices, unusually ⁠high ​refined product prices, products shortages risks, and the ​unprecedented scale of the shock," GS analysts led by Daan Struyven said in a note on Sunday.

Reuters