Hormuz Agreement Hopes Rise Amid Ongoing Middle East Tensions

Oil prices rose in early Asian trading on Monday, continuing their upward trend from last week. Brent crude approached $83.43 per barrel, a gain of about 1.5% from its closing price the previous Friday and a cumulative increase of over 5% in three sessions. WTI crude traded near $79 per barrel.

The market is waiting for a possible agreement between Iran and Oman to manage shipping through the Strait of Hormuz, while a new round of attacks in the region keeps supply risks elevated.

Iran's Foreign Minister Araghchi said on Sunday that an agreement with Oman was 'very close' to being reached but ruled out direct talks with the United States, blaming Washington for violating a memorandum signed in June. He warned that any agreement would not immediately reopen the strait.

Saudi Aramco CEO Nasser stated that even if the situation returned to normal immediately, restoring oil production and supply to pre-war levels would take at least 18 months.