Oil Rises Amid US-Iran Deal Uncertainty, Hormuz Transit Disruption

Oil prices rose from a six-week low due to ongoing uncertainty surrounding a potential US-Iran peace deal. Disruptions in the Strait of Hormuz continue to impact the transit of crude and refined products.

Mon Jun 01 2026

Oil Prices Rebound Amid Uncertainty

Oil prices have rebounded from a six-week low, currently trading around $93 a barrel. This rise follows the region's Eid holidays last week. The primary driver of this increase is the continued uncertainty surrounding a peace deal between the United States and Iran, which has dampened expectations of Iranian oil returning to the market.

Impact of Hormuz Strait Blockage

The price reflects the persistent disruption in the transit of crude oil, natural gas, and refined products through the Strait of Hormuz. Several tankers remain stranded from before the conflict, and new tankers are being prevented from entering. This has led to a drop in production and refinery output in the Gulf, significantly affecting the supply of vital jet fuel and diesel for the European summer. The market is currently pricing in this continued disruption of crucial fuel supplies coming out of the Gulf.