Oil prices were largely unchanged on Monday, giving up earlier gains as hopes for a quick reopening of the Strait of Hormuz weakened.
Brent crude was trading at $83.54 a barrel, while U.S. West Texas Intermediate fell 0.2% to $78.03. Both benchmarks dropped more than 7% last week as markets grew optimistic that Iran and Oman were nearing an agreement that could reopen the key shipping route.
Iran said a deal with Oman was in its “final stages,” but stressed that the Strait would remain restricted until the United States met several conditions, including compensation related to U.S. attacks on Iran.
The Strait of Hormuz carried roughly one-fifth of global oil supplies before the war, making developments around the waterway a major factor for energy markets.
Supply concerns also remain elevated elsewhere in the region. The Iran-aligned Houthis said they struck Saudi Aramco’s Jazan refinery, while the UAE’s ADNOC reported that 15 of its vessels had been attacked while transiting the Strait since the conflict began.
Oil markets are now balancing the possibility of restored shipping against the risk of further disruptions. Significant progress toward reopening the Strait could push prices lower, while renewed tensions or supply interruptions could quickly send them higher.