Oil prices rose on Monday as uncertainty continued over the reopening of the Strait of Hormuz, with Iran saying a deal with Oman on defining new shipping lanes was in its final stages but that the US must still meet other conditions.
Brent crude futures rose US$1.20 or 1.44% to US$84.79 a barrel by 2206 GMT, while US West Texas Intermediate (WTI) crude gained US$1.12 or 1.08% to US$79.29 a barrel.
The latest price movement came as markets continued to monitor developments surrounding the strategically important Strait of Hormuz, through which a significant share of global oil supplies passes.
Iran said discussions with Oman over arrangements to define new shipping lanes through the strait were nearing completion, although Tehran indicated that further conditions would need to be met by the US before the reopening process could move forward.
The uncertainty has kept a risk premium in oil markets, with traders weighing the potential for disruptions to crude flows against the prospect of a reopening that could ease supply concerns.
The Strait of Hormuz remains a key chokepoint for global energy markets, meaning prolonged uncertainty over shipping access can have significant implications for crude prices and supply expectations.
For now, the rise in both Brent and WTI reflects continued caution among traders as markets await further clarity over the reopening of the waterway and the wider geopolitical situation.
Reuters
