Oil prices edged up on Monday after a recent flareup in the emergency situation in the Strait of Hormuz, with Brent crude climbing 0.80% to $73.19 a barrel and West Texas Intermediate gaining 1.13% to rise back above $70 a barrel.
The increase comes after the U.S. and Iran agreed to halt strikes in the Strait of Hormuz, following renewed tensions that put the ceasefire under strain.
According to the filing, attacks carried out by both countries were a result of different interpretations of the memorandum of understanding to end the war, especially regarding traffic through the key waterway.
They accused Iran of committing a violation of the ceasefire, claiming that the Iranian military shot at least four drones at ships transversing the Strait of Hormuz.
Tehran struck cargo ships moving through Oman’s end of the key waterway as it seeks to enforce its control of all traffic, particularly through its side, with estimates suggesting it could make a significant amount of money if it effectively manages to control shipping there.
Citing Iranian officials familiar with the matter, it was detailed that, if implemented, the plan would be a significant windfall for the regime as it would provide a source of income it did not have before the war.
The U.S. conducted retaliatory strikes on at least two different occasions since Friday’s attacks, as tensions continued to escalate.
However, the countries announced on Sunday that they agreed to halt the attacks ahead of talks scheduled for Tuesday in Qatar.
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A senior U.S. official said, “We decided to stop all the kinetic activity,” in an effort to de-escalate the situation.
Iranian President Masoud Pezeshkian praised the deal reached with the U.S., calling it a victory for the Iranian people, and announced that frozen assets belonging to the country would be released by Doha.
However, according to U.S. officials, no frozen Iranian assets have been released so far, and Qatar has not acknowledged any such transfers.
There is confusion about whether talks between the countries will take place on Tuesday in Doha, with different reports noting conflicting information.
Kazem Gharibabadi, a senior Iranian negotiator, said that reports of technical talks being held in Doha are not confirmed, while mediator Pakistan and Trump administration officials said talks would resume on Tuesday.
Situation remains uncertain.
The outcome of the talks and the implementation of the agreement are still unclear, and it is affecting oil prices, with WTI and Brent crude prices fluctuating in response to the latest developments, similar to the impact of AI collapse on Bitcoin.
For more information on the Strait of Hormuz and its importance in global oil trade, visit the Wikipedia page.
