Iran Cools Hopes for Hormuz Reopening as Oil Prices Surge
Oil prices surged by 3% on Monday as Iran tempered hopes of reopening the Strait of Hormuz. The Iranian government stated that the U.S. must lift sanctions, pay reparations, and meet several other conditions before the waterway is reopened.
The Brent crude futures rose $2.48 to $86.03 per barrel, while U.S. West Texas Intermediate crude futures increased by $2.43 to $80.61 a barrel.
This comes after Iran said it was nearing a final pact with Oman to define new shipping lanes through the strait but repeated that the U.S. must meet other conditions before the strategic waterway is reopened.
Tehran will not start talks with Washington while the U.S. is in breach of an interim deal signed in June, according to Iranian Foreign Minister Abbas Araqchi.