Iran Tempts Oil Market Optimism Over Hormuz Reopening
Oil prices remained steady on Monday after initial gains were tempered by Iran's insistence that the US meet certain conditions before the Strait of Hormuz can be reopened. The waterway, which carried a fifth of the world's oil before the war, has been a major source of concern for markets.
Brent crude futures stood at $83.54 a barrel, off 1 cent, by 0643 GMT, while US West Texas Intermediate crude futures fell 15 cents, or 0.2%, to $78.03 a barrel. This comes after the benchmarks had fallen more than 7% last week on hopes of a deal between Iran and Oman.
Iran said on Sunday that a deal with Oman was in its 'final stages', but emphasized that the waterway would only reopen once Washington met other conditions, including US compensation for widespread US attacks on Iran. Iranian Foreign Minister Abbas Araqchi also stated that talks will not start as long as Washington breaches an interim deal signed in June.
The Iran-aligned Houthis said they had hit Saudi Aramco's Jazan refinery on Sunday, adding to supply concerns. The United Arab Emirates' ADNOC reported that 15 of its vessels had been attacked transiting the Strait of Hormuz since the beginning of the conflict.