Oil prices rise as traders assess US-Iran talks on Strait of Hormuz deal
Oil prices rose as markets reacted to ongoing tensions and stalled negotiations between the US and Iran regarding the Strait of Hormuz. Iran continues to demand the lifting of sanctions and other concessions before reopening the vital waterway.
Why it matters
The Strait of Hormuz is a critical chokepoint for global energy supplies, and instability there directly impacts global oil prices and economic stability.
Oil prices rose in early trading on Monday as market participants weighed mixed signals from the US and Iran, with concerns that a deal to reopen the Strait of Hormuz could take longer to materialise.Futures for international benchmark Brent crude for October delivery gained 1.04% to $84.42 a barrel, while US West Texas Intermediate futures for September advanced 0.83% to $78.83 a barrel.Iran's Revolutionary Guards insisted on Sunday that they would not reopen the Strait of Hormuz until the US complied with a list of demands.Tehran insists on retaining control of the waterway - through which a fifth of world oil and LNG pass - after the war and wants to charge tolls for passage, which Washington has pushed back against.Attacks in the strait, which was free to transit before the war, led to the collapse of an April ceasefire, and mediators have urged both sides to return to the…
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