Oil Rises as Hopes Fade for Quick Reopening of the Strait of Hormuz - Sarmad
Oil prices rose on Monday as uncertainty persisted over the reopening of the Strait of Hormuz, with Iran stating that the United States must meet several conditions, even as Tehran and Muscat entered the final stages of
Translated by Qiyas from سرمد — Original source
Oil prices rose on Monday as uncertainty persisted over the reopening of the Strait of Hormuz, with Iran stating that the United States must meet several conditions, even as Tehran and Muscat entered the final stages of negotiations over new shipping lanes.
Brent crude futures rose 84 cents, or 1 percent, to $84.39 a barrel by 0424 GMT, while U.S. West Texas Intermediate crude gained 60 cents, or 0.75 percent, to $78.77 a 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 passed before the war.
While Iran said on Sunday that the deal with Oman had reached its “final stages,” it reiterated that the waterway would not be reopened until Washington meets additional conditions, including paying compensation to Iran for its wide-ranging attacks.
Sujanda Sachdeva, founder of the New Delhi-based research firm SS Wealth Street, said, “Crude oil prices remain caught between two conflicting factors, as markets weigh the possibility of a breakthrough on the Strait of Hormuz against Iran’s conditions for reopening the strategic waterway.”
Iranian Foreign Minister Abbas Araghchi said on Sunday that Iran and the United States were not holding talks and that Tehran would not initiate them as long as Washington violated a temporary agreement signed in June.
In another threat to supplies, Iran-aligned Houthis said they attacked Saudi Aramco’s Jazan refinery on Sunday.
The attack came two days after the kingdom signed a defense agreement with its allies Turkey and Pakistan to address the escalating unrest in the region amid the U.S.-Israeli war on Iran.
Abu Dhabi National Oil Company (ADNOC) said on Friday that 15 of its ships had been attacked while transiting the Strait of Hormuz since the start of the conflict.
Sachdeva said, “Any significant progress toward restoring unrestricted shipping flows could pressure oil prices to fall, while a collapse in negotiations or a resurgence of supply disruptions could quickly bring back geopolitical risk premiums.”
