Oil prices climbed sharply on Monday as diplomatic tensions between the United States and Iran deepened following the expiration of a 60-day ceasefire between the two nations, according to Ship & Bunker.
Brent crude settled 2.5 percent higher at $90.87 per barrel, while West Texas Intermediate also gained 2.5 percent to close at $84.50 per barrel, Ship & Bunker reported. The price movement came as what the publication described as “deal fatigue” continued to spread among analysts increasingly doubtful that a lasting peace agreement between Washington and Tehran will materialize.
Trump Comments as Ceasefire Ends
Speaking from the Oval Office as the ceasefire lapsed, U.S. President Donald Trump said, “They want to make a deal, but they’re not going to make the kind of a deal that I feel is necessary,” according to Ship & Bunker.
On the Iranian side, state news agency Tasnim reported that Iran has ruled out extending diplomatic talks. Ship & Bunker also cited a senior Iranian official who told media that the country would move to an offensive posture should negotiations with the U.S. collapse.
Hormuz Traffic Continues to Slide
Both Washington and Tehran reiterated competing claims of control over the Strait of Hormuz, according to Ship & Bunker. The publication reported that only three ships transited the strait on Sunday, down from ten the previous day. Weekly traffic had already fallen 19.5 percent from the prior week’s already-reduced levels, which Ship & Bunker attributed to Iranian attacks on vessels and oil infrastructure.
Jason Stephens, founder of Evertern Wealth, told Ship & Bunker that market participants have largely grown numb to the ongoing standoff, stating, “I think a lot of people have just turned a blind eye to it; we think that there’s more bias to the downside in oil prices than there is the risk to the upside at this point in the game.”
Pipeline Bypass Still Years Away
Separately, Ship & Bunker reported that sources familiar with a proposed pipeline project said plans to transport Iraqi crude across Syria to the Mediterranean coast, bypassing the Strait of Hormuz entirely, remain at least four years away and would require roughly $15 billion in investment. Syria and Iraq have reportedly begun negotiations to finalize the project and are in talks with potential investors, with the U.S. stating its goal of making the Hormuz chokepoint “irrelevant” within a few years, according to the report.
Additionally, Ship & Bunker cited The Asahi Shimbun, which reported that a June survey by Teikoku Databank Ltd. found up to 90 percent of Japanese companies said rising energy prices were negatively affecting their operations. Japan has partially offset the impact through diversified purchasing and strategic reserve releases, though elevated import costs continue to weigh on economic activity, the report noted.
Does This Matter to You?
The sharp decline in Strait of Hormuz vessel traffic and continuing volatility in oil benchmarks carry direct relevance for vessel operators, charterers, and bunker buyers monitoring transit risk and fuel cost exposure in the region. Reduced traffic through one of the world’s most critical chokepoints, combined with rising geopolitical uncertainty, may affect voyage planning, freight rates, and bunker procurement strategies for vessels transiting or scheduled to transit the strait.
The reported multi-year timeline for the Iraq-Syria pipeline project suggests that alternative routes bypassing Hormuz will not offer near-term relief, meaning current chokepoint risks are likely to persist for the foreseeable future based on the information available.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: Ship & Bunker
