Oil prices extended gains as traders monitored details of an Iranian deal with Oman concerning the management of shipping through the Strait of Hormuz. This agreement could potentially increase Tehran’s control over the crucial waterway. West Texas Intermediate (WTI) traded above $92 a barrel, while Brent crude settled at $97 on Monday. Iran announced that the accord is in its final stages and will include a temporary safe route through Hormuz, raising questions about a potential response from the U.S. after its military struck Iranian tankers over the weekend. Tehran also issued a warning that ships face a risk of attack near Oman.
Separately, Vitol Group Chief Executive Officer Russell Hardy stated that oil-product markets are showing signs of tightness, even as crude's outlook appears "reasonable" and flows through the Strait of Hormuz are increasing. This indicates a divergence in sentiment between crude oil and its refined products.
Oil prices have been edging higher, nearing $100, as attacks persist throughout the Middle East. Earlier, Brent crude futures were up $1.63, or 1.68%, at $98.63 a barrel, while U.S. West Texas Intermediate crude was at $93.71 a barrel, up $2.23, or 2.44%. Brent briefly rose to $99.46, its highest since July 24, and WTI reached $94.73, its highest since June 8, following Houthi attacks on Saudi energy facilities and Iran's threat of "economic warfare" against the United States.
