Crude climbed to $80.42 a barrel on Monday as doubt grows that Washington and Tehran will reach a deal to reopen the Strait of Hormuz to normal ship traffic. President Trump described the U.S. approach to Iran talks as only semi-negotiating, while Tehran says the American naval blockade must end before it will fully reopen the strait.
U.S. WTI futures gained 2.9% to $80.42 a barrel by 10:25 a.m. ET on Monday. Brent crude, the global benchmark, rose 2.8% to $85.87 a barrel over the same session, as traders weighed fading odds of a shipping deal through the Strait of Hormuz.
Trump calls talks with Iran "only semi-negotiating"
President Donald Trump told Axios on Sunday that the U.S. is "only semi-negotiating" with Iran, days after he had said the two sides were in fact holding talks. He added that Washington is simply watching Iran's economy strain under heavy inflation and dwindling funds. Trump cancelled a planned attack on Iran on August 1 to leave room for negotiations, and he signaled he would keep leaning on the naval blockade to squeeze Tehran instead of launching fresh airstrikes.
Iran ties Hormuz reopening to the blockade
Iran's Foreign Ministry spokesman Esmaeil Baqaei said Monday that Tehran won't fully reopen Hormuz unless Washington first lifts the blockade, citing the state news agency Tasnim. He said Iran and Oman are holding separate bilateral talks over the strait's shipping routes.
Washington and Tehran had signed a memorandum of understanding on June 17 to reopen Hormuz to commercial traffic, but the agreement fell apart once fighting broke out over which routes ships could use. Iran attacked multiple tankers transiting Hormuz along Oman's coast under U.S. military protection, and separately demanded that ships instead sail through its own territorial waters. Washington responded with several waves of airstrikes and reimposed its naval blockade.
Separately, crude had sold off more than 7% last week after Treasury Secretary Scott Bessent told CNBC that an agreement opening Hormuz with freedom of movement for ships could arrive soon. That deal has yet to materialize as the two sides' positions have hardened, however.
Source: CNBC
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