Oil Rises as Hopes for Quick Reopening of Strait of Hormuz Fade

Oil prices rose on Monday as uncertainty persisted over the reopening of the Strait of Hormuz, after Iran said the United States must meet several conditions, including paying compensation, despite Tehran and Muscat entering the final stages of an agreement on new shipping lanes. Brent crude climbed 84 cents to $84.39, and West Texas Intermediate rose 60 cents to $78.77, after falling more than seven percent last week. The Houthis also attacked Saudi Arabia's Jazan refinery.

Oil prices rose on Monday amid continued uncertainty over the reopening of the Strait of Hormuz, as Iran said the United States must meet several conditions, even as Tehran and Muscat entered the final stages of an agreement on new shipping lanes. Brent crude futures rose 84 cents, or one percent, to $84.39 a barrel by 04:24 GMT, while U.S. West Texas Intermediate crude rose 60 cents, or 0.75 percent, to $78.77 a barrel. Both benchmark crudes had fallen more than seven percent last week amid hopes that Iran and Oman were close to reaching a deal that would lead to the reopening of the strait, through which five percent of the world's oil passed before the war. While Iran said on Sunday that the agreement with Oman had reached its "final stages," it reiterated that the waterway would not be reopened until Washington meets other conditions, including the United States paying compensation to Iran for its widespread attacks. Sugandha Sachdeva, founder of New Delhi-based SS Wealth Street research firm, said crude oil prices are stuck between two opposing factors, as markets assess the likelihood of a breakthrough on the Strait of Hormuz against Iran's conditions for reopening the strategic waterway. Iranian Foreign Minister Abbas Araghchi said on Sunday that Iran and the United States are not holding talks, and Tehran will not start them as long as Washington violates a temporary agreement signed in June. In another threat to supplies, the Iran-aligned Houthis said they attacked Saudi Aramco's Jazan refinery on Sunday, two days after the kingdom signed a defense agreement with Turkey and Pakistan. Abu Dhabi National Oil Company (ADNOC) said on Friday that 15 of its ships were attacked while transiting the strait since the start of the conflict.