Geopolitical tensions in the Middle East drive oil prices higher as negotiations to reopen the Strait of Hormuz stall.
West Texas Intermediate crude climbed to $83.50 per barrel, extending a two-day rally fueled by diminishing hopes for a US-Iran peace deal. The benchmark has risen nearly 10% from last week’s close amid escalating uncertainty in the region.
Traffic through the Strait of Hormuz, a critical oil transit route, remains severely restricted. Shipping data showed only six vessels crossed the waterway on Monday, down from a pre-war average of 130-160 ships daily. Recent military leadership changes in Iran, including a new security chief skeptical of negotiations, further dim prospects for a resolution.
The impasse over reciprocal war damage compensation continues to delay any agreement, keeping supply risks elevated for global oil markets.