Oil rises on uncertainty over reopening of the Strait of Hormuz

Oil prices rose on Monday as uncertainty persisted over the imminent reopening of the Strait of Hormuz. Iran stated that an agreement with the Sultanate of Oman to designate new shipping lanes is in its final stages, although the United States continues to demand the fulfillment of additional conditions. By 00:56 GMT, Brent crude futures had risen by 91 cents, or 1.09 percent, to $84.46 per barrel, while US West Texas Intermediate (WTI) crude increased by 61 cents, or 0.78 percent, to $78.79 per barrel.

The two benchmark crudes had fallen by more than 7 percent last week amid hopes that Iran and Oman were close to reaching an agreement that would lead to the reopening of the Strait of Hormuz, through which one-fifth of the world’s oil previously passed before the war.

While Iran stated on Sunday that the agreement with Oman had reached its “final stages,” it reiterated that the waterway would not be reopened until Washington meets other conditions, including paying Iran compensation for its large-scale attacks.

Tim Waterer, a market analyst at KCM Trade, said, “Traders are accustomed to the intermittent nature of negotiations and are waiting for concrete evidence, such as confirmed tanker movements or formal agreements, before continuing to reduce the risk premium.”

Iranian Foreign Minister Abbas Araghchi stated on Sunday that Iran and the United States are not holding talks, and that Tehran will not initiate them as long as Washington violates the temporary agreement signed in June.