Oil rises over 4% as Strait reopening doubts grow
Oil prices surged amid escalating tensions in the Gulf region. Iran has demanded that the United States lift sanctions, pay compensation, and set favorable conditions for opening the Strait of Hormuz, through which approximately one-fifth of global oil supplies pass. Brent crude futures rose by 4.4% to $87.25, and U.S. West Texas Intermediate (WTI) crude increased to $81.62, after dropping more than 7% last week amid hopes of reaching an agreement between Iran and Oman to reopen the strait. Iran believes that the U.S. must meet its conditions before allowing the vital passage to reopen, although an Iranian official confirmed that there are currently no negotiations with Washington. The region is experiencing heightened tensions, including Houthi attacks on Saudi oil facilities, maritime assaults near the Strait of Hormuz, and Ukrainian strikes on Russian oil installations—all of which are expected to prolong short-term supply disruptions.
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