Hormuz Tensions Send Oil Prices Higher Amid Stalled Reopening Talks

Oil prices rose on Monday as uncertainty persists over the reopening of the Strait of Hormuz. The waterway, which carries a fifth of the world's oil, has been closed due to ongoing tensions between Iran and the US.

Iran says it is in the final stages of negotiations with Oman to define new shipping lanes, but insists that the US must meet certain conditions before the Strait reopens. These conditions include US compensation for Iran's attacks, which Tehran considers a necessary step towards de-escalation.

Oil benchmarks Brent and WTI crude futures rose 1.09% and 0.78%, respectively, to $84.46 and $78.79 a barrel. Analysts attribute the price increase to traders' cautious approach, as they wait for tangible evidence of progress in negotiations or formal agreements.

The uncertainty over the Strait's reopening is further complicated by recent attacks on Saudi oil facilities and vessels transiting the waterway. The United Arab Emirates' ADNOC has reported 15 of its vessels being attacked since the conflict began.