Strait of Hormuz Deal Eludes US and Iran as Oil Prices Remain Elevated

Negotiations around the UN General Assembly in New York last week fueled expectations of a diplomatic settlement between the US and Iran, putting downward pressure on oil prices.

However, oil futures remained high as it became clear that no agreement had been reached to open the Strait of Hormuz, with November Brent futures ending the week near $104.1/barrel (+18% month-on-month).

The US has rejected a proposal from Iran to open the Strait in exchange for lifting sanctions and ceasing hostilities.