(RTTNews) – Oil prices traded higher on Monday, recovering from four-month lows hit last week amid renewed uncertainty over the fragile ceasefire between the U.S. and Iran.
Brent crude futures for September delivery were up 0.8 percent at $73.19 a barrel after falling more than 10 percent last week for a third consecutive weekly decline. WTI crude futures for August delivery surged 1.2 percent to $70.04.
After two nights of renewed hostilities, the United States and Iran have agreed to halt military strikes against each other and meet on Tuesday in Doha, Qatar, to resolve their disputes over shipping routes and transit fees.
Earlier, Iran had attacked commercial vessels in the Gulf, prompting U.S. strikes on Iran’s air defense sites, drone facilities and mine-laying capabilities.
Iran retaliated with strikes on U.S. bases in Bahrain and Kuwait before both sides agreed to halt strikes and meet this week.
Meanwhile, Hezbollah’s leader on Saturday pilloried the Israel-Lebanon framework agreement as “null and void” and warned its implementation would trigger civil war.
The Israeli military has targeted and destroyed Hezbollah’s underground infrastructure in southern Lebanon.
While shipping activity through the Strait of Hormuz has picked up in recent days, the International Maritime Organization (IMO) estimated that around 80 naval mines remain scattered across the waterway’s traditional shipping corridor.
Maritime experts said clearing the mines from the central channel will be a complex task that could take several weeks before the route can safely reopen.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
www.nasdaq.com