LONDON — Oil prices fluctuated on Monday as markets monitored developments following Iran's announcement regarding the Strait of Hormuz, amid a U.S.-Iran agreement aimed at reopening the key waterway.
Brent crude, the global oil benchmark, saw initial declines before showing some recovery in trading, according to market reports. The movements came as traders assessed the implementation of a memorandum of understanding signed last week between the United States and Iran.
The agreement, reached after months of conflict that disrupted shipping through the Strait of Hormuz, includes provisions for reopening the waterway to commercial traffic. The strait, through which about one-fifth of global oil supplies historically passed before recent disruptions, has been a focal point of tensions since restrictions were imposed earlier this year.
Details of the announcement from Iranian officials remained somewhat unclear on Monday, with reports of mixed signals regarding the timing and conditions for resumed tanker traffic. U.S. officials have stated that traffic continues to flow and that the U.S. blockade of Iranian ports has been lifted as part of the deal.
"Iran is expected to end its near-total closure of the Strait of Hormuz in exchange for the US lifting its blockade of Iranian ports, among other concessions," an analyst told Al Jazeera, though full implementation details were still emerging.
The conflict, which escalated in February 2026, led to significant disruptions in oil flows, pushing prices sharply higher at times. The recent framework deal has raised hopes for normalization, though analysts caution that logistical challenges and potential renewed tensions could affect full restoration of supply.
Oil prices had fallen in recent days following the initial announcement of the U.S.-Iran agreement, with Brent crude dropping to around $80-$83 per barrel at points, its lowest since early March. However, Monday's trading reflected ongoing caution as markets awaited confirmation of sustained reopenings.
Tanker traffic has begun to increase in the strait following the deal, with at least 20 oil tankers reported crossing in recent days, according to trade intelligence firm Kpler. Most followed routes designated by Iran during the initial phase.
Iranian statements have indicated plans to manage the strait jointly with Oman and potentially introduce maritime service fees after an initial 60-day period outlined in the memorandum. U.S. officials, including President Donald Trump, have emphasized expectations for toll-free passage over the longer term.
The developments come as global markets continue to recover from supply shocks caused by the earlier closure. Oil output from the region had declined sharply, contributing to volatility.
As of Monday, trading remained sensitive to any further statements from involved parties. No immediate disruptions to current flows were reported, though full normalization of pre-conflict volumes is expected to take time.
Negotiations on broader issues, including Iran's nuclear program, are set to continue within the 60-day framework following the memorandum's signing.
