Oil futures rise on continued US-Iran hostilities

Oil futures saw a slight increase on Sunday amid ongoing US-Iran hostilities, now in their fourth day. Iran has maintained its insistence on controlling the Strait of Hormuz, a critical chokepoint for global oil supply.

Brent crude, the international benchmark, climbed 0.9 percent to $72.20 a barrel, while US crude rose 1.3 percent to $70.09 a barrel. These gains offered a modest recovery after prices hit their lowest levels since the conflict began on Friday, with Brent settling around $72 and US crude closing near $69.

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Oil prices remain well below the four-year high in April of about $126 a barrel, which has eased the burden on American consumers.

Last week's price declines were fueled by hopes that a 60-day ceasefire would restore oil flows through the strait, which handles one-fifth of the world's oil supply. Tanker traffic had increased following an agreement on June 17, with both the US and Iran stating the strait would reopen without fees. However, these increases slowed after Iran struck a vessel in the strait on Thursday, and the United Nations paused plans to evacuate stranded seafarers and vessels. US and Iranian forces have since engaged in reciprocal strikes, prompting some vessels to reroute along the Omani coast.

Experts caution that simply restoring trade flows will not be enough to significantly lower oil prices. Damaged energy infrastructure requires months of repair, and it may take until 2026 for tankers to fully resume passage through the strait at pre-war levels. Oil prices remain considerably below the four-year high of approximately $126 a barrel reached in April. This has provided some relief to American consumers, with the average national price for regular gas falling to $3.87 a gallon on Sunday, a decrease of nearly 13 percent from the previous month.

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The average national price of regular gas fell to $3.87 a gallon on Sunday, according to AAA.