Oil Rises as Iran Sets Conditions for Hormuz Deal
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- Oil prices rose Monday on Hormuz reopening uncertainty, with Brent crude climbing 91 cents (1.09%) to $84.46/barrel and WTI gaining 61 cents (0.78%) to $78.79/barrel.
- Iran said its deal with Oman on new shipping lanes was in 'final stages' but insisted the Strait would only reopen once Washington meets other conditions, including US compensation for Iran's attacks.
- Both oil benchmarks had fallen more than 7% last week on hopes of a deal that would reopen Hormuz, which carried a fifth of the world's oil before the war.
- Iranian Foreign Minister Abbas Araqchi said Iran and the US are not engaged in talks and Tehran will not restart them as long as Washington breaches an interim deal signed in June.
- Houthis attacked Saudi Aramco's Jazan refinery over the weekend, two days after Saudi Arabia signed a defense pact with Turkey and Pakistan to counter growing regional instability.
- ADNOC reported 15 of its vessels were attacked while transiting the Strait of Hormuz since the start of the conflict.
Why it matters: Oil had fallen more than 7% last week on hopes of a Hormuz reopening, but Iran's demand for US compensation before reopening the strait means traders cannot yet price in a deal. With Houthi strikes on Saudi Aramco's Jazan refinery and ADNOC reporting 15 vessel attacks in the strait since the conflict began, supply threats keep stacking against a corridor handling a fifth of global oil.
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