Oil rises as Iran tempers hopes for swift Hormuz reopening
Both oil benchmarks had fallen more than 7 per cent last week
Oil prices surged on Monday (Aug 10) as speculation lingered about the future opening of the Strait of Hormuz, with Iran insisting the United States must satisfy several conditions before any reopening could occur. Brent crude futures surged 84 cents, or 1%, to $84.39 a barrel, while US West Texas Intermediate crude futures jumped 60 cents, or 0.75%, to $78.77 a barrel.
Both benchmarks had plummeted over 7% last week on optimism that Iran and Oman were nearing a deal that would lead to the Strait of Hormuz's reopening, which previously transported a fifth of the world's oil. Iran's foreign minister reiterated on Sunday that the waterway would only reopen if Washington met demands, such as US compensation for attacks on Iran.
However, Iran and the US have not engaged in talks, and Iran 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, further threatening supply. The United Arab Emirates' ADNOC reported that 15 of its vessels had been targeted while transiting the Strait of Hormuz since the conflict began.
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