Oil Jumps 3% as Iran Deal Delay Keeps Hormuz Risk in Focus

Oil prices surged more than 3% early Monday, with Brent crude nearing $94 per barrel, after renewed uncertainty over a potential Iran deal delayed prospects for fully reopening the critical Strait of Hormuz. The geopolitical risk premium returned to the market, providing a boost to Bakken crude realizations.

As of Monday morning, West Texas Intermediate (WTI) crude was trading at $90.45 per barrel, a gain of $3.09 or 3.54%, according to live price data. Brent crude stood at $93.77, up $2.65. The Bakken differential was $3.42 below WTI, putting Bakken-grade crude at approximately $87.03.

The price jump followed reports that President Donald Trump sent a proposed Iran peace agreement back for revisions, raising fresh questions about the timeline for securing unrestricted shipping through the Strait of Hormuz. According to OilPrice.com, Trump requested stronger language on Iran’s nuclear commitments and more explicit provisions governing the waterway's reopening, indicating negotiations are not near completion.

The Strait of Hormuz is the world's most important energy chokepoint, carrying roughly one-fifth of global oil trade. Any delay in reopening it keeps a geopolitical risk premium embedded in crude prices, as reported by OilPrice.com.

Over the weekend, Trump stated on social media that Iran "really wants to make a deal," but also warned that military options remain if diplomacy fails. Tehran publicly pushed back Monday, with a foreign ministry spokesman saying ending the war remains Iran's immediate priority and that no technical nuclear discussions are currently happening with Washington.

For Bakken operators, the price surge directly improves cash flow and drilling economics. With WTI above $90, the effective price for Bakken crude is strengthened, though it continues to trade at a discount to the benchmark. The sustained premium reflects ongoing market concerns about supply security, which supports production plans in North Dakota.

The price move highlights the oil market's continued sensitivity to geopolitical developments in the Middle East, particularly those affecting key maritime routes. With discussions expected to continue for at least another week, volatility may persist.