Crude oil futures rise to $84.8

Arabic - Oil prices rose amid growing uncertainty over a U.S.-Iran agreement on the Strait of Hormuz. Brent crude futures climbed $1.25, or 1.5%, to $84.80 a barrel. U.S. West Texas Intermediate crude gained $1.30, or 1.66%, to reach $79.48 a barrel.

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

Analysts at SEB Research noted in a memo: “Although the strait remains effectively closed, oil is currently trading between $80 and $85 a barrel, reflecting hope for a resolution in the near future.”

Sugandha Sachdeva of SS Wealth Street Research said: “Any significant progress toward restoring unrestricted shipping flows could pressure oil prices lower, while a collapse of negotiations or a resurgence of supply disruptions could quickly bring back the geopolitical risk premium.”