Iran’s new conditions for reopening the Strait of Hormuz keep oil risk premiums elevated amid stalled negotiations with the US.
Brent futures edged marginally higher at the start of the week as traders remained cautious due to lingering geopolitical risks. Iran’s latest demands, including US troop withdrawals and sanctions relief, have stalled progress on reopening the critical shipping route, keeping market participants on edge.
Negotiations between Iran and Oman had appeared close to establishing a safe passage, but Tehran’s additional conditions have reintroduced uncertainty. Prior talks suggested a deal was imminent, though Iran’s distrust of the US and internal divisions may be complicating efforts.
Markets reacted with restraint, avoiding large positions as headlines fluctuated. The Strait of Hormuz remains a key geopolitical lever for Iran until alternative oil export routes become fully operational.