Oil Prices Rise as Iran-Oman Deal Optimism Fades

Oil prices rose on Thursday as optimism over an Iran-Oman deal to resume shipping through the Strait of Hormuz began to fade. The commodity had surged in previous days after reports that a potential agreement was near, but traders are now growing more cautious.

Brent crude climbed 3.8% to settle above $82 a barrel, while WTI futures rose 2.8% to $77.29 a barrel. Traders had been highly sensitive to headlines around progress toward a deal, and the latest development has tempered some of that optimism.

Iranian media reports indicated that Tehran will seek to bar US and Israeli ships from the waterway and require compensation from hostile countries before they're allowed to use it. This suggests that Gulf state exports may remain restricted in the near term, despite earlier indications that a deal was close.

Even before the latest development, the outlook for an agreement had been growing murkier. Iran has insisted that Washington is not part of the agreement with Oman and hinted that normalization of the strait will depend on the lifting of an American blockade on Iranian ports.