Oil prices experienced volatility on Monday as geopolitical tensions in the Middle East influenced market sentiment.Initially, benchmark crude prices surged to over one-month highs due to concerns about potential disruptions through the Strait of Hormuz.However, the gains were reversed after Iran's foreign ministry indicated that negotiations with the U.S.could proceed based on national interests.Brent crude futures dipped 14 cents, or 0.16%, to $87.96 per barrel, while U.S.West Texas Intermediate crude fell 50 cents, or 0.61%, to $81.99 per barrel.The market's reaction highlights the delicate balance between geopolitical risks and energy supply stability.

Analysts suggest that Iran's diplomatic overtures may temper immediate price spikes, but ongoing hostilities could still pose long-term uncertainties for global oil markets.