Oil Prices Surge on Renewed Hormuz Supply Concerns

Oil prices surged on Monday as markets weighed conflicting signals from the United States and Iran over efforts to end the conflict and reopen the Strait of Hormuz.

The Brent crude futures rose by 0.53%, reaching $83.99 per barrel, while West Texas Intermediate (WTI) crude futures increased by $0.31 or 0.40% to $78.49 per barrel, according to Mettis Global data.

Iranian Foreign Minister Abbas Araghchi stated that Tehran is not currently engaged in direct negotiations with Washington to end the war or secure the reopening of the strategic waterway.

Iran has reportedly demanded compensation from the United States as a condition for reopening the Strait, and Mohammad Bagher Zolghadr, head of Iran's Supreme National Security Council, said that the waterway would remain closed until Washington meets six conditions, including an end to what Tehran considers U.S. aggression against Iran and its allies.

The United States insists that any reopening of the Strait must guarantee unrestricted freedom of navigation and cannot be subject to Iranian approval, tolls or controls, according to Citi.