Oil prices rise as Iran sets conditions for reopening Strait of Hormuz

Oil prices rose Monday as Iran‘s demands for reopening the Strait of Hormuz raised concerns over prolonged disruptions to global energy markets.

International benchmark Brent crude futures for October delivery climbed 1.09% to $84.46 a barrel, while US West Texas Intermediate futures for September rose 0.84% to $78.84.

Iranian Foreign Minister Abbas Araghchi said Sunday that the strategic waterway would not reopen until Washington meets conditions including easing sanctions and paying war reparations.

He also said Tehran is not currently in direct talks with the US, despite Washington’s claim that a deal is near.

“The Strait of Hormuz remains effectively closed,” Westpac said, adding that uncertainty remains high as the Iran war enters its sixth month.

Despite the energy market volatility, Asian stocks rose, with Japan’s Nikkei 225 gaining 2.1%, South Korea’s Kospi up 0.7% and Hong Kong’s Hang Seng Index 0.6% higher.