HOUSTON: Oil prices gained more than two per cent on Monday after attacks by the US and Iran underscored the fragility of their interim peace deal, while cautious hopes of a continued recovery in energy shipping through the Strait of Hormuz limited gains.

Brent crude futures were up $1.18, or 1.64pc, at $73.17 a barrel by 1:35 p.m. EDT (1735 GMT). US West Texas Intermediate crude gained $1.69, or 2.44pc, to $70.92.

Brent crude fell 10.6pc last week in a third consecutive weekly decline after crude shipments through the Strait of Hormuz rose to their highest since the US-Israeli war on Iran began in late February.

Outbound Persian Gulf crude exports are quickly rebounding to at least 75pc of pre-war levels, Gelber & Associates analysts said in a note on Monday.

However, analysts cautioned that traffic through the strait is far from being fully recovered, helping keep prices somewhat elevated.

“I think that reality is starting to sink in, not every barrel is going to come out the Gulf in the next week or two, you can’t really jam as many barrels through there as possible to pre-war levels. As long as the situation is risky, anyone owning a boat runs the risk of having that boat attacked as it heads through the strait,” said Bob Yawger, director of energy futures at Mizuho.

Mines in the waterway as well as insurance companies not yet being fully on board are also factors weighing on traffic through the strait, according to Yawger. Meanwhile, Middle East producers are pushing ahead with loading oil and LNG despite fresh ship attacks in the Strait of Hormuz and renewed strikes between the US and Iran in recent days, shipping data showed.

Published in Dawn, June 30th, 2026