Oil price today: Brent crude jumps over 1% as traders await Hormuz reopening

Oil prices surged over 1% on Monday as investors awaited news of the potential reopening of the Strait of Hormuz. Brent crude climbed 1.32% to $84.65 per barrel, while West Texas Intermediate crude rose 1.04% to $78.99 per barrel. The jump followed a more than 7% drop in both benchmarks last week, following reports that Iran and Oman were nearing a deal that could restore shipping through the strategic waterway, which carries a fifth of the world's oil.

Iran and Oman were reportedly close to finalizing an agreement, but Tehran demanded additional concessions from Washington first. Iranian Foreign Minister Abbas Araqchi stated that the deal was nearly complete, but the waterway's reopening would only occur once the US met Iran's conditions and lifted sanctions and military threats.

Iran and the US have not engaged in direct talks, with negotiations happening through intermediaries. Meanwhile, Houthi rebels aligned with Iran attacked Saudi Aramco's Jazan refinery on Sunday, causing a fire that was extinguished without injuries. The Houthis also targeted shipping in the Red Sea and Gulf of Aden, disrupting oil supply routes.

The UAE's ADNOC reported that 15 of its vessels were attacked while passing through the Strait of Hormuz since the conflict began. Uncertainty over the security of oil shipments persisted as markets monitored the possibility of the Strait of Hormuz reopening, though the price surge was less severe than the $126 per barrel peak during the war.