Commodities
Home›Commodities›Energy›Oil rises as uncertainty lingers over Strait of Hormuz…
Oil rises as uncertainty lingers over Strait of Hormuz reopening
Brent futures gained 1.1% to $84.46 per barrel, while WTI settled up 0.8% to $78.79, after both fell more than 7% last week on hopes of progress between Iran and Oman.
Oil prices extended a rally as traders weighed uncertainty about when the Strait of Hormuz could reopen amid ongoing Iran-US conditions and recent statements about negotiations. According to LiveMint Markets, Brent crude futures rose 91 cents, or 1.1%, to $84.46 a barrel, while US West Texas Intermediate, or WTI, advanced 61 cents, or 0.8%, to $78.79 a barrel.
The market had dropped more than 7% last week on expectations that Iran and Oman were close to an agreement that could help reopen the Strait of Hormuz, a key shipping chokepoint that carries around one-fifth of the world’s oil supply. LiveMint Markets said Iranian Foreign Minister Abbas Araghchi described an Oman-related shipping route agreement as “very close,” but said Iran is not pursuing direct negotiations with the US for now, citing alleged US violations of an interim peace accord reached in June.
Araghchi also warned that even if an agreement is reached, it would not mean an immediate return to normal flows through the waterway, tempering hopes for a quick supply recovery. LiveMint Markets noted the US President Donald Trump appeared to indicate a more measured posture, telling Axios that Washington was “low-keying it,” after weeks of threats followed by de-escalation.
Meanwhile, the risk of further Middle East disruption remains elevated, LiveMint Markets reported. It cited claims by Iran-backed Houthi militants about an attack on Saudi Arabia’s Jazan refinery, and said a tanker operated by Abu Dhabi National Oil Co. was targeted in the Strait of Hormuz over the weekend, while Iran reiterated conditions for full reopening that include ending a US naval blockade, lifting sanctions, and providing compensation for conflict-related damages.
Latest closeWTI crude $78.07 ▲3.8%|Brent $83.46