Meanwhile, Germany warns Washington not to sink into another Middle East quagmire: File Image/Pixabay
The new trading week began with U.S. president Donald Trump yet again influencing investors, this time by halting U.S. envoys to Pakistan for peace talks with Iran on the grounds it would be pointless – which prompted a 2.8 percent rise in Brent, to $108.23 per barrel.
West Texas Intermediate rose by 2 percent to $96.30.
Meanwhile, 19 commercial vessels transited the Strait of Hormuz on Saturday, compared to a the normal daily average of 129 transits, according to the United Nations; and Tehran, seeking a way out of the diplomatic impasse imposed by Trump, consulted on Monday with Russian president Vladimir Putin.
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Even with more expensive fuel bills, most big U.S. companies have nevertheless been reporting profit growth
Bloomberg
For the record, the impasse was stoked by Iran offering to reopen the strait if the U.S. ended its blockade and agreed to discussing nuclear issues at a later stage.
But despite the geopolitical tensions and escalating oil prices, Bloomberg noted that “Even with more expensive fuel bills, most big U.S. companies have nevertheless been reporting profit growth for the start of 2026 that’s even stronger than analysts expected…that in turn has helped the S&P 500 jump 13 percent since hitting a low in late March.”
In a similar vein, the Iran war caused BP shares to rise 20 percent, making it the lead of the five energy super majors; Oilprice.com pointed out that previously, BP’s share price severely underperformed those of its peers and the surge in oil prices in 2022-2023, and that conversely Exxon’s shares have dropped about 2 percent since the war began, because “part of its oil and gas production in the Middle East and all LNG volumes in which it has stakes in Qatar are trapped at the Strait of Hormuz and are unable to leave the region.”
Also in the oil-related news on Monday was German chancellor Friedrich Merz, who warned Washington that Iran had proven “clearly stronger than one thought” and the U.S. was being “humiliated” by Tehran’s leadership.
While Merz’s analysis was questionable and culminated in a plea for Washington to avoid sinking deeper into another Middle East quagmire, it was more importantly perceived as another decline in allied cohesion as the U.S. continues to sustain economic pressure on the Islamic republic.
Ship & Bunker News Team
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