Oil Prices Rise Above $91 Before Easing as Iran Signals Ongoing Diplomacy

Oil prices climbed to their highest level in a month before pulling back Monday after Iran indicated that diplomatic exchanges with the United States remain active through mediators. Brent North Sea crude briefly surpassed $91 a barrel, its highest price since June 11, on concerns that renewed fighting could disrupt flows through the Strait of Hormuz.

The benchmark later settled near $88.05, down less than 0.1 percent, while West Texas Intermediate closed at $81.61, down 0.2 percent.

U.S. equity indexes rose as oil prices eased, with the S&P 500 gaining 0.5 percent to 7,498.02 and the Nasdaq Composite advancing 0.8 percent to 25,720.68. European markets finished mostly flat, while Asian indexes closed lower under the weight of earlier oil-price spikes. The VanEck Semiconductor ETF rose 2.8 percent in early trading after losing nearly nine percent the previous week.

Iran's foreign ministry spokesman stated that messages had been received through mediators and that the diplomatic apparatus had been active in recent days. Iran's interior minister was scheduled to travel to Pakistan's capital on Monday. Yemen's Houthi rebels announced a maritime embargo targeting Saudi Arabia on the same day.

The move raised concerns about potential renewed attacks on shipping lanes linked to the Red Sea and Gulf of Aden. >"The Iran war has escalated and driven oil prices back above $90 a barrel.