Hormuz Uncertainty Sends Oil Prices Soaring
Oil prices surged on Monday as Iran and the US remained far apart on a new ceasefire deal for the reopening of the Strait of Hormuz, leaving uncertainty over the waterway's reopening.
Brent crude was near $108 a barrel, climbing more than 3%, after discussions between the two sides hit fresh snags. The conditions Iran wants are something Washington might have agreed to about a year ago, but Tehran has now overplayed its hand, US President Donald Trump told Axios in an interview.
Despite some gains being pared after Saudi Arabia was said to have started exporting oil using a key cross-country pipeline, key gauges of supply tightness have spiked in recent days, signaling a clamor for barrels that can be delivered quickly. Fuel prices are also surging as global refinery capacity remains hobbled.
Speculators ramped up bearish wagers at the fastest pace since July last week, positions that could be coming under pressure with Monday's rally.