Hormuz Reopening Uncertainty Sends Oil Prices Soaring Again

Oil prices rose on Monday as uncertainty surrounded the reopening of the Strait of Hormuz. Iran said an agreement with Oman was in its final stages, but Tehran still demanded that the US meet certain conditions before the strait reopens. The US is being asked to provide compensation for attacks on Iranian targets.

Brent crude prices rose 91 cents or 1.09% to USD 84.46 a barrel at 00:56 GMT, while West Texas Intermediate (WTI) crude prices increased by 61 cents or 0.78% to USD 78.79 a barrel. This comes after oil prices plummeted over 7% last week due to hopes of an agreement between Iran and Oman.

Iran's Foreign Minister Abbas Araqchi stated that direct talks with the US had not taken place, and Tehran would not initiate negotiations while Washington was deemed in breach of an interim agreement signed in June. The uncertainty surrounding the reopening of Hormuz has increased risks to energy facilities and shipments in the region.