Oil Prices Soar 3% as Iran Cools Hopes for Strait Reopening
Oil prices surged by 3% on Monday after Iran tempered hopes of reopening the Strait of Hormuz. The development follows news that the U.S. must lift sanctions on Tehran, pay reparations, and meet other conditions before the strategic waterway is reopened.
Brent crude futures rose $2.48, or 3%, to $86.03 a barrel by 10:44 a.m. EDT (1444 GMT), while U.S. West Texas Intermediate crude futures climbed $2.43, or 3.1%, to $80.61.
The uptick comes after Iran said it was nearing a final pact with Oman to define new shipping lanes through the strait but repeated that the U.S. must meet other conditions before the waterway is reopened.
Iranian Foreign Minister Abbas Araqchi stated on Sunday that Tehran will not start talks while Washington is in breach of an interim deal signed in June.