Oil Prices Rise on Strait of Hormuz Uncertainty
Oil prices rose on Monday due to uncertainty over the reopening of the Strait of Hormuz, which is critical for global oil trade. Iran announced that a deal with Oman defining new shipping lanes was in its final stages but emphasized that the waterway would only reopen if the US meets certain conditions, including compensation for Iranian attacks.
The Brent crude futures rose 91 cents or 1.09% to $84.46 per barrel, while U.S. West Texas Intermediate crude futures rose 61 cents or 0.78% to $78.79 a barrel, after falling over 7% last week on hopes of a deal.
Tim Waterer, chief market analyst at KCM Trade, said traders are waiting for tangible evidence of the deal's progress before unwinding their risk premium. Iran and the US are not engaged in talks unless Washington meets the conditions set by Tehran.