Brent Settles at $105.28 as Hormuz Risk Keeps Oil Traders Cautious

Brent crude settled at $105.28 a barrel on Monday, up 96 cents, or 0.9 per cent. US West Texas Intermediate added 19 cents, or 0.2 per cent, to $92.60. Both benchmarks trimmed earlier gains as diplomatic contacts around the Strait of Hormuz balanced supply concerns against hopes for talks.

Qatari mediators were expected to hold separate discussions with US and Iranian officials on Monday or Tuesday. The meetings followed an Iranian proposal to reopen the waterway as part of a wider peace plan, which US President Donald Trump rejected over the weekend. Whether diplomacy produces concrete steps is the key near-term question for traders watching regional supply risk.

Monday’s settlement shows a cautious market response rather than proof of an export interruption. Futures can react to the risk of disrupted shipping before physical-flow data changes, and can give back gains when negotiation prospects improve. The distinction matters for buyers setting budgets: the contract close alone does not show how much crude moved or whether delivery costs changed.

For Nigerian firms, global oil benchmarks are only one factor in fuel and logistics costs. Exchange rates, domestic supply, output volumes and local pricing arrangements also affect what businesses pay. A single session’s price change therefore cannot be read as a forecast for pump prices or government receipts.

Market participants will be watching for progress in mediation and for evidence of any change in oil movements through the region. Until those signals are clearer, price swings will continue to reflect both supply risk and the possibility that diplomacy may ease it.

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