Crude oil prices steadied on Monday after recent losses, as markets weighed a proposed U.S. effort to move stranded ships out of the Strait of Hormuz against signals of renewed contact between Washington and Tehran.
U.S. West Texas Intermediate traded near $101 per barrel, while Brent crude held above $108. Both benchmarks had dropped on Friday after Iran sent a revised proposal for talks, raising expectations of a possible settlement with the United States.
The latest moves reflect two opposing drivers: easing concerns over a potential diplomatic path and continued uncertainty around shipping routes in the Middle East.
Shipping Plan Signals Risk
In a post on Truth Social on Sunday, U.S. President Donald Trump said Washington would try to help vessels from countries not involved in the conflict exit the Strait of Hormuz, where traffic has been disrupted.
"I have told my Representatives to inform them that we will use best efforts to get their Ships and Crews safely out of the Strait," Trump said. He added that crews had indicated they would not return until the area is safe for navigation.
The post did not outline how the plan would be executed. The announcement is expected to take effect from Monday.
Iran Talks Remain Uncertain
The statement came after Iran said it had received a U.S. response to its latest proposal for talks. Tehran had earlier sent a revised offer through Pakistani mediators.
That proposal had lifted market sentiment at the end of last week, with traders pricing in the possibility of reduced tensions.
However, Trump later said he was not satisfied with the offer. "They have no military left," he said on Friday, adding that Iran was seeking a deal under pressure.
Oil prices fell sharply on Friday before stabilising. U.S. crude declined 3% to settle at $101.94 per barrel, while Brent crude dropped nearly 2% to $108.17.
Despite the pullback, both benchmarks remain about 78% higher since the start of 2026, reflecting ongoing supply concerns linked to the region.
Markets are now tracking whether diplomatic efforts progress or whether risks to shipping routes intensify further.
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