Oil prices rose during Asian trading on Monday as uncertainty returned over the reopening of the Strait of Hormuz after Iran said a deal with Oman to establish new shipping lanes was in its final stages, while insisting that the United States must meet additional conditions.
By 2:45 pm AEST (4:45 am GMT), Brent crude futures had risen 67 cents, or 0.8%, to $84.22 a barrel, while U.S. West Texas Intermediate (WTI) crude futures gained 48 cents, or 0.6%, to $78.66 a barrel.
Brent and WTI benchmarks fell 5% and 7.7% last week on hopes that Iran and Oman were close to reaching an agreement that could lead to the reopening of the Strait of Hormuz, through which around a fifth of global oil supplies passed before the war.
Iran said over the weekend that an agreement with Oman was in its "final stages", but reiterated that the waterway would only reopen once Washington met additional conditions, including compensation for widespread U.S. attacks on Iran.
ANZ analysts commented in a note to clients:
"The conflict also appears to be widening, with the Iranian-backed Houthis saying they conducted a large-scale attack against Yemen’s Saudi-aligned government.
"This follows reports they had struck a Saudi tanker in the Gulf of Aden and threatened shipping in the northern Red Sea."
Iranian Foreign Minister Abbas Araqchi reportedly said on Sunday that Iran and the U.S. were not engaged in talks and that Tehran would not initiate negotiations while Washington continued to breach an interim deal signed in June.
