Crude oil prices climbed on Monday after President Donald Trump cautioned Iran to act swiftly amid a continuing stalemate over peace negotiations. Analysts noted that oil inventories have reached historic lows as supply disruptions persist.
On the commodities markets, July Brent crude contracts rose by 2.03% to settle at $111.56 per barrel. U.S. West Texas Intermediate contracts for June delivery advanced 2.55%, reaching $108.11 per barrel and marking their highest level for the month.
President Trump, addressing the standoff with Tehran, posted on Truth Social over the weekend that Iran faced a shrinking window of opportunity, suggesting severe consequences if negotiations remain stalled. The message followed a period of heightened tension, with talks over the reopening of the Strait of Hormuz at an impasse and concern increasing about potential renewed military conflict.
Industry observers pointed out that oil stocks are dropping rapidly as disruptions in Middle East exports continue. The International Energy Agency (IEA) reported last Wednesday that global oil inventories have contracted significantly, with reductions accelerating in recent months after U.S. and Israeli military actions in Iran disrupted Gulf energy shipments.
Preliminary figures from the IEA show a decrease in world oil stocks of 129 million barrels during March and a further 117 million barrel drop in April. The steepest reductions were observed in OECD nations, where on-land reserves fell by 146 million barrels. In contrast, visible inventories in non-OECD countries declined by 24 million barrels over the same period.
The IEA described these losses as unprecedented, attributing over one billion barrels of lost supply to Gulf producers, with daily export capabilities reduced by more than 14 million barrels since the outbreak of conflict.
