Luojiashan tanker sits anchored in Muscat, as Iran vows to close the Strait of Hormuz, amid the U.S.-Israeli conflict with Iran, in Muscat, Oman, March 7, 2026. REUTERS\/Benoit Tessier<\/p>\n
Oil\u00a0Prices\u00a0Hit Two-week High as Iran Talks Stall and Strait Shipments Lag<\/p>\n
NEW YORK, April 27 (Reuters)\u00a0\u2013\u00a0Oil\u00a0prices\u00a0climbed about 2% to a two-week high on Monday as peace talks between the U.S. and Iran stalled and shipments through the<\/p>\n
remained limited, keeping global\u00a0oil\u00a0supplies tight.<\/p>\n
Brent futures\u00a0LCOc1\u00a0rose $2.16, or 2.1%, to $107.49 a barrel at 10:01 a.m. EDT (1401 GMT), while U.S. West Texas Intermediate (WTI) crude\u00a0CLc1\u00a0rose $1.32, or 1.4%, to $95.72.<\/p>\n
That put Brent up for a sixth day in a row for the first time since March 2025 and on track for its highest close since April 7.<\/p>\n
Work has not halted to bridge gaps between the\u00a0United States and Iran, sources from mediator Pakistan said, despite the failure of face-to-face diplomacy after U.S. President Donald Trump called off a trip by his envoys and said Iran should phone when it wants a deal.<\/p>\n
\u201cThe diplomatic stand-off means that every day 10-13 million barrels of\u00a0oil\u00a0fail to get to the international market, worsening an already tight\u00a0oil\u00a0balance. Therefore, there is only one direction for\u00a0oil\u00a0prices\u00a0to go,\u201d said PVM\u00a0Oil\u00a0Associates analyst Tamas Varga.<\/p>\n
At least seven ships \u2013 mainly dry bulk vessels \u2013 have crossed the\u00a0Strait of Hormuz\u00a0in the past 24 hours, in line with muted activity in recent days. That represents a fraction of the average 140 daily passages before the\u00a0Iran war\u00a0began on February 28 when around 20% of global\u00a0oil\u00a0supplies passed through the Strait.<\/p>\n
The\u00a0European Central Bank\u00a0meets on Thursday, with an Iran war ceasefire easing the pressure on it for an immediate interest rate hike.<\/p>\n
But with the status of peace talks unclear and no sign of the Strait of Hormuz reopening soon, traders still anticipate high\u00a0oil\u00a0prices\u00a0will boost inflation and force the bank to hike interest rates later this year.<\/p>\n
Central banks like the ECB use interest rates to keep inflation in check. Higher interest rates increase consumer borrowing costs, which can reduce economic growth and\u00a0oil\u00a0demand.<\/p>\n
Goldman Sachs\u00a0raised its\u00a0oil\u00a0price forecasts\u00a0for the fourth quarter to $90 a barrel for Brent and $83 for WTI, citing reduced output from the Middle East.<\/p>\n
\u201cThe economic risks are larger than our crude base case alone suggests because of the net upside risks to\u00a0oil\u00a0prices, unusually high refined product\u00a0prices, products shortages risks and the unprecedented scale of the shock,\u201d GS analysts led by Daan Struyven said in a note on Sunday.<\/p>\n
U.S. gasoline futures\u00a0RBc1\u00a0closed on Friday at their highest\u00a0prices\u00a0since July 2022. That also boosted the gasoline crack spread\u00a0RBc1-CLc1, which measures refining profit margins, to its highest since July 2022.<\/p>\n
Elsewhere in the Middle East, the ceasefire between Israel and Lebanon was also on shaky ground.<\/p>\n
The Israeli military began carrying out strikes in eastern\u00a0Lebanon\u00a0on Monday, expanding the scope of its bombing campaign during a ceasefire that has failed to fully halt hostilities with the Iran-backed\u00a0Lebanese armed group Hezbollah.<\/p>\n