---
title: 'Oil Gains as US–Iran Talks Stall and Strait of Hormuz Risks Persist'
url: 'https://thediplomaticinsight.com/oil-gains-as-us-iran-talks-stall-strait-hormuz-risks-persist/'
author: 'News Desk'
date: '2026-05-04T17:02:40+05:00'
categories:
  - 'Economy'
---

# Oil Gains as US–Iran Talks Stall and Strait of Hormuz Risks Persist

**New York (TDI):** Oil prices edged higher on Monday, recovering from earlier losses, as markets remained supported by the absence of a breakthrough in US–Iran peace talks and continued uncertainty over shipping flows through the Strait of Hormuz.

Brent crude rose around 1% to above $109 a barrel, while US West Texas Intermediate also gained about 1%, trading near $103 a barrel. Both benchmarks had fallen sharply in the previous session before reversing course.

Analysts said prices remain elevated due to ongoing geopolitical risks and constrained supply routes. As one market strategist noted, the outlook for oil “remains skewed to the upside” as long as restrictions on Gulf shipping persist.

The market reaction comes despite comments from US President Donald Trump, who said the United States would assist in securing safe passage for commercial vessels stranded in the region.

However, no agreement has been reached between Washington and Tehran, and negotiations remain stalled despite continued diplomatic engagement over the weekend.

**Read More: [Oil Prices Hit 4-Year High Amid US-Iran Tensions](https://thediplomaticinsight.com/oil-prices-hit-4-year-high-amid-us-iran-tensions/)**

Iran has warned that any foreign interference in the Strait of Hormuz would be met with a strong response, further heightening market concerns.

At the same time, the UK Maritime Trade Operations reported a tanker incident near the UAE coast, adding to fears of instability in key shipping lanes.

Supply-side developments also influenced sentiment after the OPEC+ announced a modest output increase for June. The group agreed to raise production targets by 188,000 barrels per day, marking the third consecutive monthly increase.

However, analysts say the additional supply is largely theoretical, as actual flows remain constrained by regional conflict and disruptions in Gulf shipping routes.

**Read More: [Trump Discusses Oil Market Impact of Iran Blockade](https://thediplomaticinsight.com/trump-discusses-oil-market-impact-of-iran-blockade/)**

Despite short-term volatility, oil markets remain sensitive to developments in US–Iran negotiations, with traders closely watching whether diplomacy can restore stability to one of the world’s most critical energy corridors.