Oil Climbs for Third Session

Crude oil climbed toward $79 per barrel on Monday, marking a third consecutive session of gains as uncertainty persisted over efforts to reopen the Strait of Hormuz. Iran said over the weekend that talks with Oman on establishing a shipping route through the strategic waterway were nearing an agreement, but warned that any arrangement would not lead to an immediate reopening of Hormuz. Tehran also rejected direct negotiations with the US for now, citing breaches of the interim peace deal reached in June, while maintaining demands for an end to the US naval blockade, the lifting of sanctions and compensation for war damages. Meanwhile, President Donald Trump signaled patience amid mounting pressure on the US to reach a deal with Tehran. Elsewhere, Iran-backed Houthi militants in Yemen claimed an attack on Saudi Arabia’s Jazan refinery, while a tanker operated by Abu Dhabi National Oil Co. came under attack in Hormuz over the weekend.

Crude oil rose about 1% to settle at $78.2 per barrel on Friday, but still recorded a more than 7% decline over the week. Prices remained highly sensitive to developments surrounding a potential Iran-Oman agreement to restore shipping through the Strait of Hormuz, which could return millions of barrels of Middle Eastern oil to global markets. However, uncertainty persisted, with Abu Dhabi National Oil Co. reporting attacks on three vessels transiting Hormuz and Iran reportedly targeting vessels it considers hostile. President Donald Trump maintained that negotiations were progressing, but differences remain over conditions for reopening the waterway. Meanwhile, Iran-backed Houthis claimed a large-scale attack against Saudi-aligned forces in Yemen. Oil reversed some gains in post-settlement trading after reports that the US could lift its naval blockade once commercial shipping through the strait resumes without restrictions.

Crude oil traded around $77 per barrel on Friday, moving between gains and losses as investors weighed negotiations between Iran and Oman over the Strait of Hormuz against renewed geopolitical tensions. Optimism over a partial reopening of the strategic waterway faded as Iran reportedly sought to exclude US and Israeli vessels and impose fees on countries it considers hostile. The US, meanwhile, has pushed for unrestricted transit and a return to pre-war conditions, leaving the two sides seemingly far apart on the terms of any agreement. President Donald Trump maintained an optimistic tone, saying the conflict could end “pretty soon” and that discussions were progressing. However, reports of Iran attacking “hostile targets” in the strait following explosions near Qeshm Island added to concerns over shipping security. Separately, Iran-backed Houthi militants said they had carried out a “large-scale” attack against forces aligned with Yemen’s Saudi-backed government.