Oil prices moved higher on Monday, June 22, 2026, after shipping activity through the Strait of Hormuz slowed significantly and early discussions between the United States and Iran under an interim peace agreement encountered difficulties, as per news reports.
Renewed concerns over global oil supply helped support crude prices despite expectations of increased production from key exporters.
Brent crude futures rose 54 cents, or 0.67%, to US$81.11 a barrel after reaching an intraday high of US$82.30. Meanwhile, US West Texas Intermediate (WTI) crude gained US$2.02, or 2.64%, to US$78.62 a barrel, while the more actively traded August contract climbed to US$77.28.
Shipping data showed a sharp decline in vessel traffic through the Strait of Hormuz after Iran announced another closure of the strategic waterway. Tehran cited alleged violations of the interim peace agreement by both Israel and the United States.
The Strait of Hormuz remains one of the world's most important energy transit routes, carrying a substantial share of global crude exports. Any disruption to traffic through the channel tends to raise concerns about supply shortages and market stability.
Market sentiment was also influenced by the first round of discussions between US and Iranian officials under the interim peace arrangement. While diplomatic engagement continued, disagreements persisted over regional security commitments.
US President Donald Trump warned that military action against Iran could resume if tensions escalate further. At the same time, Iranian officials accused Washington of failing to meet certain obligations under the agreement.
Concerns were heightened by renewed violence in Lebanon, where Israeli strikes reportedly caused casualties shortly after a ceasefire with Hezbollah came into effect.
Read More: India's Strategic Oil Reserves Can Sustain Only 9–10 Days of Crude Imports: Report!
Despite the latest rise, crude prices remain below recent highs after falling more than 8% last week. Investors continue to assess the possibility of increased oil supply from the Gulf region and a potential easing of sanctions on Iranian oil exports.
Additionally, the United Arab Emirates, Kuwait and Iraq have reportedly increased oil availability to customers. Iraq has also outlined plans to gradually raise crude production to between 4.2 million and 4.3 million barrels per day.
Oil markets remain highly sensitive to geopolitical developments in the Middle East. While disruptions in the Strait of Hormuz are supporting prices, expectations of additional supply and ongoing diplomatic negotiations may continue to influence crude oil price movements in the coming weeks.
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Published on: Jun 22, 2026, 8:27 AM IST
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