US-Iran war: Oil prices climbed on Monday amid uncertainty over when the Strait of Hormuz could reopen, after Iran said negotiations with Oman on establishing new shipping routes were nearing completion but maintained that the US still needed to fulfil additional conditions.
Brent crude futures gained 91 cents, or 1.09%, to $84.46 a barrel, while US West Texas Intermediate (WTI) crude futures advanced 61 cents, or 0.78%, to $78.79 a barrel.
Both benchmarks had declined more than 7% last week on expectations that Iran and Oman were close to an agreement that could facilitate the reopening of the Strait of Hormuz, a key global oil transit route that carried around one-fifth of the world’s oil supply before the war.
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Iranian Foreign Minister Abbas Araghchi said over the weekend that an agreement with Oman to create a shipping route through the Strait of Hormuz was “very close.” However, he ruled out direct negotiations with the US for now, citing Washington’s alleged violations of an interim peace agreement reached in June.
Araghchi also cautioned that even if an agreement is reached, it would not lead to the immediate reopening of the key waterway, tempering expectations of a quick recovery in disrupted energy supplies. US President Donald Trump, meanwhile, appeared to signal a more measured approach, telling Axios on Sunday that Washington was now “low-keying it.” His comments came after weeks of threats of major strikes against Iran, followed by repeated de-escalation.
The possibility of renewed conflict in the Middle East remains high, keeping investors and markets on edge. Iran-backed Houthi militants in Yemen claimed responsibility for an attack on Saudi Arabia’s Jazan refinery, while a tanker operated by Abu Dhabi National Oil Co. was targeted in the Strait of Hormuz over the weekend.
The US has repeatedly maintained that it is involved in discussions concerning the management of the strait, a claim Tehran has rejected. Iran on Saturday reiterated its conditions for fully reopening the waterway, including an end to the US naval blockade, the lifting of sanctions and compensation for damages caused by the conflict.
(With inputs from agencies)
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