Iran Strait of Hormuz Delay Sparks Oil Price Surge

Oil prices surged nearly 3% on Monday after Iran delayed the reopening of the Strait of Hormuz, reviving concerns over global energy supplies. The strategic waterway previously handled about one-fifth of global oil and liquefied natural gas shipments before the conflict in the Middle East began at the end of February.

The Brent crude futures rose 3.27%, to $86.30 a barrel, while US West Texas Intermediate crude futures gained 3.48%, to $80.84. This followed a sharp decline last week, when both benchmarks fell more than 7% on optimism that Iran and Oman were nearing an agreement to reopen the Strait of Hormuz.

Tehran said it was close to reaching a final agreement with Oman on new shipping lanes through the strait while maintaining that Washington must first meet several conditions, including compensation, the removal of sanctions and an end to military threats before the waterway can reopen. Iranian Foreign Minister Abbas Araqchi also stated Tehran would not resume talks with the United States while Washington continued to violate an interim agreement signed in June.