SINGAPORE — Oil prices rose on Monday as uncertainty over the reopening of the Strait of Hormuz persisted after Iran said the strategic waterway would not fully reopen without major concessions from the United States, raising concerns that disruptions to energy shipments could continue.
Brent crude rose 0.8% to $84.22 a barrel, while U.S. West Texas Intermediate gained 0.7% to $78.72, according to Reuters market data. The gains followed a decline of more than 7% in oil prices the previous week as traders had anticipated progress toward reopening the strait.
Iranian Foreign Minister Abbas Araqchi said on Sunday that an agreement with Oman to establish new shipping lanes through the waterway was nearing completion, but that the agreement alone would not lead to a full reopening. He said Tehran was seeking U.S. compensation, an end to military threats and sanctions, among other conditions.
The Strait of Hormuz is a major route for global oil and gas shipments, and disruptions there have constrained energy flows from the Gulf. The U.S. Energy Information Administration has estimated that the closure since February caused significant production disruptions in several Gulf producers.
The latest developments have tempered expectations of a swift return to normal shipping through the waterway. The status of negotiations and the timing of any broader reopening remain subject to further developments.
