OIL PRICES HOLD AT $87 AS US-IRAN TALKS STALL

Oil prices remained at $87 per barrel as investors adopted a cautious stance while monitoring developments in US-Iran negotiations and efforts to reopen the Strait of Hormuz. Mohammad Reza Naghdi, senior adviser to the commander of Iran's Revolutionary Guards, stated that prolonging conflict with the United States would signal to future administrations that hostility towards Iran carries a cost. Naghdi said during an appearance on PBS NewsHour that Iran must achieve deterrence to ensure security and prevent future attacks.

The two countries remain at odds over control of the Strait of Hormuz, a narrow waterway critical to global oil transit. Donald Trump claimed the United States has "total control" of the strait, whilst Tehran stated it has the passage "blocked" and will not reopen it until Iran's conditions are met. David Morrison, senior market analyst at Trade Nation, noted that oil traders have shifted focus towards concerns about slowing demand growth as US-Iran peace efforts remain stalled and disruption around the strait persists.

The global energy watchdog warned that oil stockpiles were "rapidly depleting", according to Morrison's market analysis. Traders continue to monitor further developments in negotiations between Washington and Tehran as the situation influences broader commodity markets and investor sentiment.