Oil prices rise as U.S. and Iran reach deal to halt attacks, U.S. oil above $70 per barrel again
Oil prices were higher after an agreement between the U.S. and Iran to halt recent hostilities in the Middle East.
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The crude oil tanker ANWAAR TRABLUS unloads United States crude oil at Pachi Port near Athens, Greece, on June 28, 2026.
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Oil prices rose on Monday following an agreement between the U.S. and Iran to halt recent hostilities in the Middle East.
U.S. West Texas Intermediate futures rose 1.4% to $70.23 per barrel. The WTI contract settled below $70 on Friday for the first time since Feb. 27 — the day before the start of the Iran war.
International benchmark Brent crude futures, meanwhile, gained 1.1% to $73.41.
The moves follow clashes between the U.S. and Iran that threatened to derail negotiations aimed at ending the conflict. U.S. officials said both sides would pause hostilities and allow commercial vessels to freely transit the strategically vital Strait of Hormuz.
"Technical talks are slated to continue on all areas of the MOU," a U.S. official told CNBC on Sunday.
"Both sides will stand down for now and vessels can move freely," the official said.
The U.S. military attacked a number of Iranian targets after a commercial tanker in the Strait of Hormuz was reportedly struck by a projectile on Saturday. Iran's neighbors, Kuwait and Bahrain, also reported incoming missiles and drones overnight.
The renewed violence prompted U.S. President Donald Trump to warn Iran on Sunday of devastating consequences.
"United States aircraft just struck Iranian missile and drone storage locations, and coastal radar sites, for violating the Cease Fire Agreement, AGAIN!," Trump wrote on Truth Social.
"There may come a point when we are no longer able to be reasonable, and will be forced to militarily complete the job that we very successfully started. If that happens, the Islamic Republic of Iran will no longer exist!" he added.
U.S. Central Command said early Sunday that fighter jets struck 10 Iranian military targets in and near the Strait of Hormuz in retaliation for a drone strike on the Panamanian-flagged tanker, the M/T Kiku. The vessel was transiting the strait with more than two million barrels of crude oil, CentCom said late Saturday.
Market complacency?
Strategists at ING said energy market participants appeared to be too optimistic about the timeline for a recovery in Persian Gulf oil supplies.
Developments over the weekend underscored the risks still facing the oil market, ING's Warren Patterson and Ewa Manthey said in a research note published Monday.
"Even so, participants appear to be shrugging off these developments, instead focusing on what a continued recovery in oil flows would mean for the global balance," Patterson and Manthey said.
"This complacency is odd and clearly leaves significant upside risk if the supply recovery proves slow – or if we see significant re-escalation. While the oil market is technically in oversold territory, momentum appears to still be to the downside," they added.
— CNBC's Azhar Sukri and Garrett Downs contributed to this report
