Oil prices continued to rise as market participants awaited a potential agreement between Iran and Oman concerning the Strait of Hormuz. Brent crude traded above $84 a barrel after a more than 5% increase over the prior three sessions, while West Texas Intermediate (WTI) was near $79. This movement occurred as Houthi militants claimed an attack on a Saudi refinery near the Red Sea, adding to regional instability.
Iran's Foreign Minister Abbas Araghchi stated over the weekend that a deal with Oman to establish a shipping route through Hormuz was "very close." However, he cautioned that any accord would not immediately reopen the waterway, dampening expectations for a swift resumption of disrupted energy flows. Araghchi also ruled out direct talks with the US at this time, citing violations to an interim peace deal from June.
US President Donald Trump signaled patience regarding the situation, stating to Axios on Sunday that the US was now "low-keying it." These remarks followed weeks of heightened tensions and attacks in the region. The elusive nature of a definitive accord contributed to oil's extended gains as traders weighed the potential for ongoing disruptions to global oil supplies.
