Oil Holds Above $105 as Markets Watch Iran War Developments

Crude oil prices remained supported above the $105 level during Monday’s trading session, as geopolitical tensions between Iran and the United States continue to dominate market sentiment. The current situation in the Middle East is adding another layer of uncertainty to global markets, especially with investors closely monitoring any potential impact on inflation and energy supply chains.

According to recent reports, Iran has delivered another amended proposal for a possible peace agreement to the Trump administration through Pakistani mediators. Tehran stated that its main focus remains ending the ongoing conflict, while discussions around nuclear matters have not yet entered the negotiations phase.

At the same time, President Donald Trump increased pressure on Iran with strong political statements, warning that time is running out for Tehran to reach an agreement. The aggressive tone coming from Washington continues to keep traders cautious, particularly in the commodities market.

From a market perspective, oil reacted positively to the renewed geopolitical risks. Historically, any escalation in the Middle East tends to support crude prices due to fears of supply disruptions and higher transportation costs. Rising oil prices could also push inflation expectations higher again, especially after recent signs that global inflation was slowly stabilizing.

Technically, crude oil is still trading within a short-term bullish structure after successfully holding above the key support area near $105.25. As long as prices remain above this zone, the market may continue targeting higher levels toward $108 and potentially $112 in the coming sessions. However, volatility remains extremely sensitive to political headlines and any sudden developments regarding a ceasefire agreement.

Meanwhile, pressure continues to appear on equity markets, with investors shifting toward safer assets amid uncertainty. If tensions continue to escalate, markets may begin pricing in a more complicated outlook for global growth, inflation, and central bank policies during the second half of 2026.

Prepared by: Motasm Adel
Senior Market Analyst – OneRoyal

Risk Disclaimer: Trading involves significant risk and may not be suitable for all investors. The information provided in this article is for educational and analytical purposes only and does not constitute investment advice.