Oil Prices Rise on Uncertainty Over Strait of Hormuz Reopening

Oil prices rose on Monday due to uncertainty over the reopening of the Strait of Hormuz. According to Reuters, Brent crude futures increased by 91 cents or 1.09% to $84.46 a barrel, while U.S. West Texas Intermediate crude futures rose 61 cents, or 0.78%, to $78.79 a barrel.

The uncertainty stems from Iran's statement that a deal with Oman defining new shipping lanes was in its final stages but that the waterway would only reopen once Washington met other conditions, including U.S. compensation for widespread attacks. Tim Waterer, chief market analyst at KCM Trade, noted that traders have been conditioned by the on-again, off-again nature of negotiations and are waiting for tangible evidence before further unwinding the risk premium.

A Saudi oil plant was attacked over the weekend, with the Iran-aligned Houthis saying they had hit the Jazan refinery. The United Arab Emirates' ADNOC reported that 15 of its vessels had been attacked while transiting the Strait of Hormuz since the beginning of the conflict.