Analyst: The development of the situation in the Strait of Hormuz has cast a "worrisome shadow" over US-Iran negotiations.

Vivek Dhar of Commonwealth Bank of Australia said in a research report that the escalating situation in the Strait of Hormuz over the weekend has cast a "concerning shadow" over potential US-Iran talks that may take place this week. The analyst stated that with the two-week ceasefire agreement ending on Tuesday, the possibility of renewed conflict cannot be ruled out. Dhar added that the US naval blockade currently threatens 3.8 million barrels per day of oil and refined oil products passing through the Strait of Hormuz in March, as Iran is unlikely to allow any ships to pass if its own shipments are blocked by the US. Near-month West Texas Intermediate futures rose 5.8% to $88.68 per barrel, while near-month Brent crude futures rose 5.2% to $95.08 per barrel in recent months.