Oil prices rise as Iran cools hopes for quick Hormuz reopening

Oil prices opened the week higher as Iran dampened expectations of a swift reopening of the Strait of Hormuz, with Brent crude trading around $84 per barrel and WTI near $79 on Monday. The gains follow a weekly decline of more than 7% for both benchmarks, driven by earlier hopes that Iran and Oman were close to a deal to restore traffic through the strait, which carried about a fifth of global oil before the conflict Source: La República.

The standoff

Iran's foreign minister, Abbas Araghchi, said talks with Oman on a new navigation route were in their "final stage," but stressed that this would not mean an immediate reopening of the strait Source: El Heraldo de México. Tehran reiterated that it will not resume direct negotiations with Washington while the United States fails to honor the June memorandum of understanding Source: El Día. The Islamic Republic has set conditions for reopening, including an end to the naval blockade, lifting of sanctions, release of frozen assets, and war reparations Source: Euronews.

Market reaction

US President Donald Trump downplayed the urgency, saying "we are only negotiating partially" with Iran and that Washington is "taking it calmly" Source: Infobae. Meanwhile, the Revolutionary Guards declared the strait "a real war scenario" until the US accepts "all our conditions" Source: Euronews. Analysts note that oil prices remain trapped between hopes for a deal and the risk of further supply disruptions Source: La República.

Additional risks

Beyond Hormuz, Houthi militants attacked a Saudi Aramco refinery in Jazan, and ADNOC reported that 15 of its vessels have been attacked since the conflict began Source: El Español. US strategic petroleum reserves fell to 298.7 million barrels, the lowest in over four decades Source: El Caribe.