Oil prices rose on Monday at the opening, with the resurgence of uncertainties around diplomacy between the United States and Iran continuing to fuel concerns despite the extension of the ceasefire.
At the time of writing, the price of Brent, the international benchmark, rose by 2.8% to $108 per barrel, making it 10% more expensive in a week.
Meanwhile, the WTI, the American benchmark, was up 2.5% to around $96.7 per barrel.
This rebound comes after a second round of discussions between the United States and Iran did not yield progress over the weekend.
On Saturday, the White House decided not to send envoys to Pakistan to continue negotiations. The American president stated that Tehran had not responded to the demands of the United States, and uncertainty persisted about the country’s leadership.
“If they want, we can talk, but we won’t send anyone,” Trump said on Sunday. He had also previously indicated on social media, “They just need to call!!”
In parallel, the continued Iranian missile activities forced oil tankers to avoid the Strait of Hormuz, a crucial maritime route through which about one-fifth of the world’s crude oil supply usually passes.
European stock markets were trading little changed on Monday morning, with the Euro Stoxx 50 and the broader Stoxx 600 hovering near balance as investors evaluated the latest developments in the negotiations between the United States and Iran.
The British FTSE 100 and French CAC 40 were slightly down, while the German DAX was up nearly 0.2% at the same time, and the Italian FTSE MIB was up more than 0.2%.
American futures contracts were all slightly in the red, with the Nasdaq, rich in technology stocks, faring the best by remaining almost stable.
As investors closely monitor the situation in the Middle East, attention turns this week to central banks, with key interest rate decisions expected from the European Central Bank, the Federal Reserve, and the Bank of England.
“The three central banks are expected to keep their rates unchanged,” but analysts will scrutinize every word for clues about the duration of this restrictive stance, as the global economy remains subject to the unpredictability of the conflict in Iran.
