Oil prices increased on Monday, with U.S. West Texas Intermediate futures rising 2.9% to $80.42 per barrel by 10:25 a.m. ET, and Brent crude, the international benchmark, up 2.8% to $85.87 per barrel. The rise in prices comes as doubts grow regarding the potential for a deal between the U.S. and Iran to enhance ship traffic through the Strait of Hormuz.
President Donald Trump stated in an interview with Axios that the U.S. is 'only semi-negotiating' with Iran, despite previous claims of ongoing talks. He indicated a preference for using the U.S. naval blockade as leverage against Tehran rather than conducting airstrikes.
Last week, oil prices fell over 7% after Treasury Secretary Scott Bessent suggested that a deal to allow freedom of movement for ships through Hormuz could be imminent. However, no agreement has been finalized, as both Tehran and Washington have taken firmer stances.
Iran's Foreign Ministry spokesman, Esmaeil Baqaei, asserted that the U.S. must lift its blockade for negotiations to progress. He noted that Iran and Oman are currently engaged in bilateral discussions regarding shipping routes in the strait.
A memorandum of understanding signed by the U.S. and Iran on June 17 aimed to open Hormuz to commercial shipping, but the agreement collapsed amid disputes over navigation routes. Iran has conducted attacks on tankers in the region, prompting the U.S. to respond with airstrikes and a renewed naval blockade.