LONDON, Aug. 10 (Alliance News): Global oil prices edged higher on Monday as investors weighed optimism over efforts to reopen the Strait of Hormuz against Iran’s insistence that the United States must first meet several conditions before maritime traffic through the strategic waterway can resume.
Brent crude futures rose 67 cents, or 0.8%, to $84.22 per barrel by 1027 GMT, while US West Texas Intermediate (WTI) crude futures gained 54 cents, or 0.7%, to $78.72 per barrel.
Despite Monday’s gains, both benchmark contracts had fallen more than 7% last week amid expectations that Iran and Oman were close to reaching an agreement that could lead to the reopening of the Strait of Hormuz.
Before the outbreak of the Middle East conflict in late February, the strategic waterway handled nearly 20% of global oil and liquefied natural gas (LNG) shipments, making it one of the world’s most important energy transit routes.
Iran confirmed on Sunday that negotiations with Oman were in their final stages but reiterated that the strait would only reopen after Washington fulfilled several conditions, including compensation for the extensive US military strikes carried out against Iran.
Iranian Foreign Minister Abbas Araqchi also said Tehran would not resume direct negotiations with Washington as long as the United States continued to violate the interim agreement signed between the two countries in June.
Market analysts said investors remain cautiously optimistic but continue to price in significant geopolitical risks.
“Although the strait is still essentially closed, oil is currently trading between $80 and $85 per barrel, reflecting market expectations that a solution could emerge in the near term,” analysts at SEB Research said in a market note.
Fresh regional tensions also continued to support oil prices.
Iran-aligned Houthi forces claimed responsibility for a missile strike on a Saudi Aramco refinery on Sunday, further raising concerns about energy infrastructure in the Gulf.
The reported attack came just two days after Saudi Arabia, Turkey and Pakistan signed a defence cooperation pact aimed at strengthening regional security amid escalating instability linked to the ongoing US-Israel conflict with Iran.
Meanwhile, the Abu Dhabi National Oil Company (ADNOC) disclosed on Friday that 15 of its vessels had come under attack while transiting the Strait of Hormuz since the conflict began.
Energy analysts warned that oil markets remain highly sensitive to developments in the Gulf.
Sugandha Sachdeva, founder of New Delhi-based research firm SS WealthStreet, said any meaningful progress towards restoring unrestricted shipping through the Strait of Hormuz could place downward pressure on crude prices.
However, she cautioned that any collapse in negotiations or renewed disruptions to oil supplies would likely trigger another sharp rise in prices as geopolitical risk premiums return to the market.
