TOKYO, Japan – Global crude markets have kicked off the trading week with a sharp upward swing, reversing a steep multi-day decline after new reports emerged that Washington has toughened its negotiating positions with Tehran amid ongoing Middle East tensions. When Asian markets reopened Monday following the weekend break, benchmark prices climbed notably, driven by shifting expectations around a potential deal that could unlock greater oil exports from the region.
West Texas Intermediate, the key pricing benchmark for United States crude, jumped 2.5% to settle at $89.60 per barrel in early trading. For August-delivery Brent crude, the global benchmark sourced from the North Sea, the uptick was equally pronounced: the contract traded at roughly $93.16 per barrel, marking a 2.2% increase from its closing position on the previous Friday.
This rebound comes on the heels of a dramatic seven-day stretch that saw crude values plummet more than 11% across global markets. That sharp drop was fueled by widespread investor optimism that a breakthrough peace agreement between the US and Iran was imminent, a deal that market participants expected would quickly lead to the full reopening of the Strait of Hormuz. The strategic waterway remains one of the most critical chokepoints in global energy infrastructure, carrying roughly a fifth of the world’s daily oil supply to international markets.
But over the weekend, that optimistic outlook was upended. Leading US outlets including *The New York Times* reported that former President Donald Trump had revised a draft memorandum of understanding under negotiation with Tehran, sending the modified document back to Iranian officials with several key terms tightened. The shift in negotiating posture has scrambled earlier expectations of a quick deal, injecting fresh uncertainty into Middle East energy supply dynamics and pushing traders to adjust their positions accordingly.