Oil Prices Surge as Iran Sets Conditions for Strait of Hormuz Reopening
Oil prices rose on Monday as Iran's demands for reopening the Strait of Hormuz raised concerns about prolonged disruptions to global energy markets.
The international benchmark Brent crude futures for October delivery increased by 1.09% to $84.46 a barrel, while US West Texas Intermediate futures for September rose by 0.84% to $78.84 a barrel.
Iranian Foreign Minister Abbas Araghchi stated on Sunday that the strategic waterway would not reopen until Washington meets conditions including easing sanctions and paying war reparations.
Araghchi also clarified that Tehran is not currently in direct talks with the US, contradicting Washington's claim that a deal is near.
Westpac noted that 'The Strait of Hormuz remains effectively closed,' adding that uncertainty remains high as the Iran war enters its sixth month.