Oil prices rose on Monday as uncertainty persisted over the reopening of the Strait of Hormuz, with Iran saying the United States must meet several conditions even as Tehran and Oman moved into the final stages of agreeing on new shipping lanes.
Brent crude futures rose 84 cents, or 1%, to $84.39 a barrel by 0424 GMT, while US West Texas Intermediate crude futures rose 60 cents, or 0.75% to $78.77 a barrel, Reuters reported.
Both benchmarks had fallen more than 7% last week on hopes that Iran and Oman were close to reaching a deal that would result in a reopening of the Strait of Hormuz, which carried a fifth of the world's oil before the war.
While Iran said on Sunday that a deal with Oman was in its "final stages", it reiterated that the waterway would only reopen once Washington met other conditions, including US compensation for widespread US attacks on Iran.
"Crude oil prices remain caught between opposing forces, as markets assess the possibility of a breakthrough over the Strait of Hormuz against Iran's conditions for reopening the strategic waterway," said Sugandha Sachdeva, founder of SS WealthStreet, a New Delhi-based research firm.
Iran and the US are not engaged in talks and Tehran will not start them as long as Washington breaches an interim deal signed in June, Iranian Foreign Minister Abbas Araqchi said on Sunday.
"Any major progress towards restoring unrestricted shipping could exert downward pressure on oil prices, while a breakdown in negotiations or renewed supply disruptions could quickly revive the geopolitical risk premium," Sachdeva said.
