Brent crude sticks at $115 as Iran vows policy stability

Brent crude oil traded near $115 per barrel early Monday morning, holding firm as Iranian officials declared their negotiating positions unchanged. The price stability persisted despite heightened military tensions and a new incident involving a commercial vessel in the Persian Gulf.

Iranian Foreign Minister Abbas Araghchi told a televised audience in Tehran that the prospect of renewed conflict would not alter the government's strategy. He stated, 'Whether there is war or not, our policies remain the same.' Araghchi added that the United States and Israel had attempted military solutions twice previously and would not see different results. Foreign ministry spokesperson Esmaeil Baqaei confirmed that indirect communications with Washington remain active through intermediaries, even though direct negotiations have stalled for weeks.

President Donald Trump framed the current diplomatic standoff as a binary choice during a Sunday interview with Fox News. He said, 'I have a decision to make: Do I finish it off, which would be very easy to do, or do I make a deal?' Trump referenced a potential 'Epic Fury' operation and claimed the U.S. now controls the Strait of Hormuz. He also criticized the 2015 nuclear deal, which his administration withdrew from during his first term. Speculation grew that new strikes could be ordered following the midterm elections scheduled for Tuesday.

The U.K. Maritime Trade Operations center, known as UKMTO, reported that a tanker exiting the Strait of Hormuz was struck by an unidentified projectile on Friday. The impact disabled the ship, though the crew remained safe. This incident followed Iran's claim on Thursday that it had hit at least four tankers near the strait. Those claims lacked independent verification, and Trump accused Tehran of fabricating attacks to inflate oil prices before the midterms.

Regional leaders convened in Tehran on Monday to seek de-escalation. Saudi Defense Minister Khalid bin Salman, Pakistani General Asim Munir, and Turkish intelligence chief Ibrahim Kalin met with Iranian security chief Mohsen Rezaei. Saudi Deputy Minister for Public Diplomacy Rayed Krimly described the visit as a support mechanism for mediation efforts led by Qatar and Pakistan. These talks occur after eight months of regional war.

Violence in Yemen continued to affect the broader conflict. The Saudi-led coalition intercepted a Houthi ballistic missile aimed at Riyadh and destroyed two launchers in Sanaa. The Houthi group claimed responsibility for hitting Riyadh's international airport shortly after flights resumed. They also reported drone strikes on oil pumping stations. Previous Houthi attacks in October closed the airport for over two weeks and forced Saudi Arabia to delay its flagship investment conference until 2027.

In Israel, Prime Minister Benjamin Netanyahu warned that Iran and its proxies might attack to disrupt Tuesday's elections. He told supporters, 'Don't test us.' Defense Minister Israel Katz dismissed a Channel 12 report of a dispute between Netanyahu and army chief Eyal Zamir as 'entirely baseless.' Netanyahu called the same report 'rubbish.' Iran's foreign ministry stated that the outcome of the U.S. election would make no difference to Tehran's approach.