Just when it seemed that peace was within reach, the US has carried out a series of 'defensive' attacks, as they have termed them, in southern Iran, whilst its ally Israel resumed its campaign in Lebanon against Hezbollah. These military actions took place whilst Iran's Foreign Minister and its chief negotiator were in Doha (Qatar) to hold peace talks with US negotiators on a solution to the conflict.
This resumption of hostilities immediately pushed up the price of Brent futures by $2.36, equivalent to approximately 2%, whereas in the previous session on Friday (yesterday, Monday, was a public holiday in the US) it had closed with a 7% fall, driven by rumours of a possible end to the war and the closure of the Strait of Hormuz.
"Traders are betting heavily that a decisive breakthrough will finally free the oil tankers that have long been paralysed and trapped in and around the Strait of Hormuz," said Tim Waterer, chief market analyst at KCM Trade, in comments reported by Reuters.
The United States and Iran are reported to have reached a preliminary agreement under which they commit to seeking a solution to the conflict and the closure of the Strait of Hormuz within a maximum of 60 days. Meanwhile, hundreds of ships carrying the equivalent of one-fifth of the world's energy supply are stranded in the waters of the strait, waiting for the passage to reopen.