Oil prices extended gains on Monday amid persistent uncertainty over the reopening of the Strait of Hormuz and new attacks by Iran-backed Houthi rebels on Saudi energy infrastructure, fueling geopolitical supply concerns.
European natural gas benchmarks posted a second consecutive weekly loss as diplomatic efforts in the Middle East eased supply fears, though tight physical market conditions limited the decline.
Citigroup has increased its third-quarter price forecast for Brent crude to $80 per barrel, citing an expected delay in the resolution of the U.S.-Iran conflict. The bank's long-term price outlook remains unchanged.
Gold prices posted their best weekly gain since February, driven by disappointing U.S. jobs data that lowered rate hike expectations and prompted a reversal of significant outflows from precious metal funds.
Gold prices remained stable near a seven-week peak, as investors balanced weakening U.S. labor market data, which tempered Federal Reserve rate hike expectations, against geopolitical risks in the Middle East.
Crude oil futures gained as uncertainty over the reopening of the Strait of Hormuz and fresh attacks by Houthi militants on Saudi energy facilities heightened global supply concerns.
Iran has outlined a broad set of conditions for the United States, including the lifting of sanctions and payment of compensation, before it will reopen the critical Strait of Hormuz waterway. The demands come as Tehran and Muscat finalize a technical pact on new shipping lanes, while regional tensions remain high.
Crude benchmarks gained over 1% as Iran indicated a deal with Oman on new shipping lanes is nearing completion, but added that other U.S. conditions must still be met, prolonging the key waterway's closure.
Iran reports a deal with Oman to establish new shipping lanes in the Strait of Hormuz is nearly complete, but states the critical waterway will not reopen until the U.S. lifts sanctions, pays compensation, and meets other key demands.
