Brent trades near $88.5 on Hormuz and Iran-US tensions

Brent crude oil fluctuated around $88.5 a barrel on Monday as traders weighed continued geopolitical tensions against signs that more oil is moving through the Strait of Hormuz than initially expected.

Gulf producers appear to be maintaining substantial shipments from the Persian Gulf despite the ongoing conflict, helping to limit concerns over an immediate supply shock.

Meanwhile, diplomatic efforts between Iran and the US remain stalled.

President Donald Trump reportedly threatened military action against Oman if it interferes with the US blockade of Iranian vessels, although oil prices showed little reaction to the statement.

At the same time, Iran and Oman appeared to be making progress toward an agreement on managing traffic through Hormuz, but the US has not been involved in those discussions.

Washington is unlikely to support any arrangement that does not guarantee unrestricted passage through the strategic shipping route.