Iran's Hormuz Conditions Send Oil Prices Soaring
Oil prices surged on Thursday as Iran set new conditions for reopening the Strait of Hormuz, a key shipping lane in the Middle East. The development undercut hopes that oil shipments could normalize soon.
Brent crude rose by 1.7% to around $85 a barrel, while US crude increased by 1.7% to approximately $80 per barrel, reversing some of last week's decline. This reversal was tied to optimism about the potential reopening of the Strait, which handles about one-fifth of global oil and liquefied natural gas shipments.
Iranian Foreign Minister Abbas Araqchi stated that Iran is working with Oman on new shipping lanes but linked any reopening to US steps such as compensation and an end to sanctions and military threats. Araqchi also emphasized that there are no direct talks between the two countries.