Oil prices rose on Monday as Iran's latest demands for reopening the Strait of Hormuz dampened hopes of a swift return to stability in global energy markets.
Brent crude, the international benchmark, climbed more than 1 percent, with October futures at 84.43 dollars a barrel at 4:30 GMT, up about 16 percent from levels seen before the start of the US and Israel's war on Iran, which began in late February.
Iranian Foreign Minister Abbas Araghchi said on Sunday that, while Iran and Oman were close to an agreement on the Strait of Hormuz, the waterway would not reopen until Washington met certain conditions, including easing sanctions on Tehran and paying war reparations.
"The lack of concrete movement, together with lingering questions about the practical details of any agreement, is keeping a risk premium in the price," Tim Waterer, chief market analyst at Sydney-based KCM Trade, told Al Jazeera. "Each day that passes without a breakthrough is making traders a little more cautious."
Shipping through the strait, a conduit for about one-fifth of global oil supplies before the war, has effectively collapsed since the conflict began, triggering what Al Jazeera described as the largest energy disruption in recorded history. Between eight and 15 vessels crossed the strait on August 4, 5 and 6, according to ship-tracking platform MarineTraffic, a fraction of the roughly 130 transits recorded before the conflict.
On Saturday, the United Arab Emirates condemned Tehran over what it said was an Iranian missile attack on a vessel owned by the Abu Dhabi National Oil Company (ADNOC).
At least 64 violent incidents and 17 deaths involving commercial vessels have occurred in the region since the war began, according to the International Maritime Organization, most of which have been blamed on Iran.
Despite renewed volatility in energy markets, Asian stocks rose on Monday morning, with Japan's Nikkei 225 up 1.9 percent, while South Korea's Kospi and Hong Kong's Hang Seng Index were both 0.7 percent higher. The gains followed an all-time high on Wall Street on Friday, as weaker-than-expected jobs data lowered expectations of interest rate hikes by the US Federal Reserve.
Waterer said the latest jump in oil prices reflects market scepticism about how quickly negotiators can reach a workable deal to reopen the strait. "Even if an agreement is eventually announced, history suggests these understandings can prove fragile," he said. "That residual risk of reversal would likely limit how far oil prices could fall in the event of a diplomatic breakthrough."
Sources
- Al Jazeera: [Oil prices climb as Iranian demands cloud outlook for Strait of Hormuz](https://www.aljazeera.com/economy/2026/8/10/oil-prices-climb-as-iranian-demands-cloud-outlook-for-strait-of-hormuz)
