Oil Prices Surge as Iran-Oman Deal Raises Supply Concerns

Oil prices rose on Thursday as investors weighed the uncertain outcome of negotiations between Iran and Oman over shipping through the Strait of Hormuz, while reported attacks on Saudi oil tankers by Yemen's Houthi rebels heightened concerns over global energy supplies.

Brent crude futures climbed to $80.28 per barrel, up 83 cents or 1.04%, while US West Texas Intermediate (WTI) crude gained to $75.83 per barrel, a rise of 61 cents or 0.81% by 11:58 GMT.

Market participants remained cautious following reports that Iran and Oman had reached an understanding on the geographic coordinates for a shipping route through the Strait of Hormuz, with a joint announcement expected once finalised.

The proposed arrangement would grant Tehran greater control over vessels entering the Gulf through the Strait of Hormuz as part of efforts to ease tensions with the United States.