On Monday, Brent crude futures rose by 1.09% to $84.46 per barrel, while U.S. West Texas Intermediate futures increased by 0.84% to $78.84 per barrel. The rise in oil prices comes amid conflicting reports about negotiations between the U.S. and Iran.
Iranian Foreign Minister Abbas Araghchi stated that there are no direct talks currently taking place, contradicting U.S. claims that a deal is imminent. Iran has also demanded compensation from the U.S. as a condition for reopening the Strait of Hormuz, which remains effectively closed until the U.S. meets six specific conditions, including ceasing hostilities against Iran.
The U.S. insists that any reopening must ensure unrestricted navigation without Iranian control. Additionally, risks are heightened due to ongoing threats from Houthi groups in Yemen against shipping in the Red Sea, further complicating the situation.
Analysts from Westpac noted that uncertainty is high as the conflict continues, impacting alternative supply routes and contributing to elevated oil prices