Hormuz Deal Hopes Offset by Ongoing Middle East Tensions

Oil prices continued to rise on Monday as traders weighed hopes for a deal to manage shipping through the Strait of Hormuz against ongoing regional tensions. Brent crude was trading near $85 a barrel, while US West Texas Intermediate crude was close to $79 a barrel.

The agreement between Iran and Oman is 'very close,' according to Iranian Foreign Minister Abbas Araghchi, who also ruled out direct talks with the United States. However, any deal would not immediately reopen the Strait of Hormuz, a critical conduit for global oil supplies.

Aramco CEO Amin Nasser cautioned that restoring oil production and supplies to pre-war levels could take at least 18 months, even if conditions returned to normal immediately.