Oil climbs following renewed US, Iran strikes in Middle East

SINGAPORE (Reuters) – Oil prices rose on Monday following days of tit-for-tat strikes by the ‌U.S. and Iran that underscored the fragility of their interim peace deal and again slowed energy shipping through the Strait of Hormuz._x000D_
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Brent crude futures climbed 58 cents, or 0.8%, to $72.57 a barrel at 0207 GMT ​while U.S. West Texas Intermediate crude was at $70.11 a barrel, up 88 cents, or ​1.3%._x000D_
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“There’s still plenty of risk facing the oil market. Even so, participants ⁠appear to be … focusing on what a continued recovery in oil flows would mean for ​the global balance,” ING analysts said in a note on Monday._x000D_
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“This complacency is odd and clearly ​leaves significant upside risk if the supply recovery proves slow.”_x000D_
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Brent crude fell 10.6% last week, its third weekly decline, after crude shipments through the strait rose last week to their highest level since the U.S.-Israeli war on ​Iran began in late February._x000D_
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However, traffic has since slowed following renewed attacks on ships in ​the strait from Thursday, including a Qatar-linked oil tanker, that triggered strikes from the U.S. and Iran in the ‌worst ⁠escalation since they signed an interim peace deal._x000D_
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Capping oil price gains, Iran and the U.S. agreed to halt recent hostilities in the Gulf and renew talks regarding their dispute over the Strait of Hormuz, a U.S. official said on Sunday._x000D_
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“The market is likely to re-evaluate its assumption of ​a quick recovery of ​oil supply from ⁠the Persian Gulf,” ANZ analysts said in a note._x000D_
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Saudi oil giant Aramco (2222.SE), opens new tab resumed crude oil loadings on Friday at its Ras Tanura terminal, west of ​the Strait of Hormuz, after they were halted for nearly four ​months, as ⁠oil producers ramped up output and exports ahead of an interim deal._x000D_
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Loadings continued even after a helicopter belonging to the company crashed on Sunday at Ras Tanura, killing 14 nationals. The cause of the ⁠crash ​was unknown._x000D_
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“Physical flows are constrained by tanker backlogs, damaged ​infrastructure and production shut-ins. It could take the remainder of the year before supply is near pre-conflict levels,” ANZ analysts ​said.