Oil Prices Edge Higher As Hormuz Reopening Remains Uncertain

Brent crude futures rose 91 cents, or 1.09%, to $84.46 a barrel by 0056 GMT, while U.S. West Texas Intermediate crude futures gained 61 cents, or 0.78%, to $78.79 a barrel.

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Hormuz Deal Still Faces Conditions

The latest move came after Iran said an agreement with Oman covering new shipping lanes was in its final stages. Tehran, however, maintained that the Strait of Hormuz would not reopen until the United States met additional conditions, including compensation related to attacks on Iran.

The uncertainty has limited expectations of an immediate return to normal shipping activity through the waterway. The Strait of Hormuz is a major route for global energy supplies and carried about one-fifth of the world’s oil before the conflict.

Both Brent and WTI had declined by more than 7% last week as hopes of an agreement between Iran and Oman increased. The latest developments have since brought some of that supply-related uncertainty back into focus.

Oil Prices React To Supply Risks

Iranian Foreign Minister Abbas Araqchi said on Sunday that Tehran and Washington were not engaged in negotiations. He also said Iran would not begin talks while Washington continued to breach an interim agreement signed in June.

The developments have added to concerns surrounding energy infrastructure and transportation routes in the region. A Saudi oil facility was attacked over the weekend, with the Iran-aligned Houthis claiming responsibility for an attack on Saudi Aramco’s Jazan refinery.

The incident came two days after Saudi Arabia signed a defence pact with Turkey and Pakistan amid rising regional tensions linked to the U.S.-Israeli conflict with Iran.

Separately, Abu Dhabi National Oil Company (ADNOC) said on Friday that 15 of its vessels had been attacked while transiting the Strait of Hormuz since the beginning of the conflict.

Global Crude Market Remains Focused On Shipping

The recent price movement follows a sharp decline in crude prices last week as the possibility of a reopening of the waterway reduced the immediate supply risk premium. With the timing of any reopening still unclear, the

Brent crude price has again moved higher.

The WTI crude price also advanced on Monday, although the gain remained below 1%. The direction of both benchmarks continues to be closely linked to developments affecting crude transportation through the Gulf.

Regarding India, any changes in international crude oil prices may impact the country’s energy sector, although the pricing of fuels for consumers may also be affected by other issues, such as taxation, refining expenses, shipping, and foreign exchange rates.

Any further insights about the opening up of the Strait of Hormuz and passage of oil carriers through this route will continue to be important to the crude oil market.