Oil prices erase gains after Iran says U.S. talks could be pursued based on national interests - CNBC

What the report says

CNBC reported that oil prices climbed Monday as the U.S.-Iran conflict intensified, then eased from stronger overnight gains after Iran signaled diplomacy remained possible. Brent crude briefly moved above $90 a barrel before settling at $89.22, up 1.3%, while U.S. West Texas Intermediate ended at $83.23, up 0.9%. CNBC said prices moderated after Iranian Foreign Ministry spokesman Esmail Baghaei indicated talks with Washington could be pursued if they aligned with Tehran’s national interests.

The market reaction followed President Donald Trump’s warning that Iran would face consequences for the deaths of three U.S. service members. According to CNBC, American forces had carried out a ninth straight night of strikes against Iranian targets, in response to repeated attacks on tankers moving through the Strait of Hormuz. The report said those maritime attacks have killed at least two seafarers and injured more than a dozen this month.

CNBC also reported that Yemen’s Houthi militants, described as Iran’s allies, declared a maritime embargo against Saudi Arabia. That raised concern over additional pressure on energy flows, including around the Bab el-Mandeb Strait and Saudi exports routed to the Red Sea, which CNBC described as an important outlet for crude markets during the conflict.

The report cited a UK maritime advisory saying a Malta-flagged oil products tanker off Oman was hit by a projectile over the weekend, with the crew later rescued. CNBC added that U.S. gasoline prices returned to $4 a gallon, while Energy Aspects’ Amrita Sen warned that a major slowdown through Hormuz, combined with low inventories, could push crude above $100 a barrel.