Oil prices advanced on Monday as uncertainty persisted over the reopening of the Strait of Hormuz, after Iran indicated that a deal with Oman defining new shipping lanes was in its final stages but stressed that the United States must still meet additional conditions before the waterway can be fully restored to normal operations. Brent crude futures rose $1.20, or 1.44%, to $84.79 per barrel by 2206 GMT, while U.S. West Texas Intermediate climbed $1.12, or 1.08%, to $79.29 a barrel.
The diplomatic standoff over one of the world's most strategically vital oil transit chokepoints continues to inject a geopolitical risk premium into global crude benchmarks. The Strait of Hormuz is the passage through which a significant portion of global seaborne oil exports flow, making any disruption or uncertainty around its status a key driver of energy market sentiment. Iran's position that Oman-brokered negotiations are nearing conclusion, while simultaneously conditioning the strait's reopening on further U.S. concessions, has kept traders on edge and supported upward pressure on prices.
Reporting by Helen Clark; Editing by Nick Zieminski. Source: Reuters.
Source: reuters.com