Oil gains as Iran deal proves elusive

Oil prices surged on Monday (August 10) as uncertainty prevailed regarding the reopening of the Strait of Hormuz. Iran declared the United States must fulfill several conditions before the waterway could reopen, despite Teheran and Oman nearing the final stages of an agreement to open new shipping lanes. Brent crude futures climbed 84 cents, or 1 percent, to $84.39 a barrel, while US West Texas Intermediate crude futures increased 60 cents, or 0.75 percent, to $78.77 a barrel.

Both benchmarks had plummeted more than 7 percent the previous week due to hopes of an Iran-Oman deal that would allow the Strait of Hormuz to reopen, which carries a fifth of the world's oil supply. Iranian Foreign Minister Abbas Araqchi stated that Iran and the US are not engaging in talks and will not initiate them as long as Washington violates an interim deal signed in June.

Meanwhile, the Iran-aligned Houthis attacked Saudi Aramco's Jazan refinery, and the United Arab Emirates reported that 15 of its vessels had been targeted while navigating the Strait of Hormuz since the onset of the conflict.