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WTI rises more than 6% on uncertainty over Strait of Hormuz reopening
WTI was around $81.15 per barrel near a one week high after reports of a possible temporary shipping restoration through the Strait faded without a final deal.
WTI rallied more than 6% on Monday as uncertainty about when the Strait of Hormuz will reopen kept supply concerns and a geopolitical risk premium in place, FXStreet reported. At the time of writing, WTI traded around $81.15 per barrel, near a one week high, after last week’s losses.
Oil prices had dropped last week on reports that Iran and Oman were nearing an agreement to temporarily restore shipping through the waterway. FXStreet said the move proved short lived because no final announcement followed.
The proposed agreement details released on Thursday suggested Tehran was seeking greater control over shipping routes, including vessels potentially required to pay transit fees. Iranian Foreign Minister Abbas Araghchi later said talks with Oman on defining new shipping lanes were in their final stages, while Tehran stressed an agreement on routes alone would not reopen the waterway.
According to FXStreet, Iran is demanding the United States lift its naval blockade, and Reuters reports Tehran is also seeking sanctions relief, compensation for war damage, and security guarantees before a lasting arrangement. The outlet added that US President Donald Trump pushed back on those demands in a Truth Social post, and that Iranian media suggested Tehran could wait until January 20, 2029 to return to negotiations.
Latest closeWTI crude $78.07 ▲3.8%