Iran Rejects US MOU Talks, Sending Oil Prices Higher

Oil prices saw a slight increase after Iran rejected talks to extend a memorandum of understanding (MOU) with the US, which was linked to keeping the Strait of Hormuz open by August 17th.

The rejection of the MOU marked a small but significant jump in geopolitical risk, causing September West Texas Intermediate (WTI) futures to rise 0.3% to $82.67 a barrel, while October Brent crude climbed 0.6% to $89.05.

The key issue at play is the Strait of Hormuz, a narrow shipping lane that handles a large share of the world's seaborne oil and is one of the fastest ways regional tensions can show up in energy prices.