Introduction 3 - Oil rises amid renewed attacks between Washington and Tehran

SAUDI ARAMCO

SAUDI ARAMCO

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- Oil prices rose more than 1 percent on Monday after tit-for-tat attacks between the United States and Iran showed the fragility of their interim agreement to end the trade war, but gains were capped by expectations that energy shipping traffic through the Strait of Hormuz would continue to recover.

A source told Reuters on Monday that technical teams from Iran and the United States tasked with implementing the memorandum of understanding are expected to meet in Doha in the coming days, after tit-for-tat attacks over the weekend threatened to undermine the agreement.

Brent crude futures rose $1.16, or 1.61 percent, to settle at $ 73.15 a barrel, while U.S. West Texas Intermediate crude gained $1.52, or 2.2 percent, to settle at $70.75 a barrel.

Brent crude plunged 10.6 percent last week, marking its third consecutive weekly decline, after crude oil shipments through the Strait of Hormuz hit their highest levels since the outbreak of the US-Israeli war on Iran in late February.

Iranian Deputy Foreign Minister Kazem Gharibabadi told state television on Monday that Iranian and Omani experts would launch talks in the coming days to determine transit routes in the Strait, adding that Tehran would try to prevent ships from passing outside the designated routes.

Crude oil exports from the Gulf are recovering rapidly, reaching at least 75 percent of pre-war levels, analysts at Gilbert & Associates said in a note released today.

Shipping data showed that Middle Eastern oil and liquefied natural gas producers continued loading operations despite new attacks on ships in the Strait of Hormuz and renewed attacks between the United States and Iran in the past few days.

Saudi Aramco resumed loading crude oil at Ras Tanura, west of the strait , on Friday after a hiatus of nearly four months.

Loading operations continued even after a company helicopter crashed yesterday, Sunday, in Ras Tanura, killing 14. The reasons for the crash are still unknown.