Brent crude held broadly flat and WTI slipped on Monday after Iran's foreign minister said Tehran is not currently negotiating with Washington to reopen the Strait of Hormuz. Iran's national security chief reportedly said the waterway will stay shut until the U.S. meets six conditions, while Houthi attacks in the Red Sea keep pressure on shipping beyond the strait.
Brent crude futures for October delivery were broadly flat at $83.48 a barrel as of 2:33 a.m. ET on Monday. WTI futures for September fell 0.2% to $77.99 a barrel over the same stretch. Both benchmarks had rallied more than 1% earlier in the session, before easing as traders weighed conflicting signals from the U.S. and Iran.
Iranian Foreign Minister Abbas Araghchi said Tehran is not currently in direct talks with the U.S. to end the war and reopen the strait, even as Washington had earlier said a deal was near. Iran has also asked the U.S. for compensation as a condition for reopening the waterway, according to a report by the Independent.
Iran ties reopening to six demands
The Strait of Hormuz will stay shut until the U.S. meets six conditions, including ending the war and aggression against Iran and its allies, Mohammad Bagher Zolghadr, head of Iran's supreme national security council, reportedly said. Washington, however, maintains that any reopening must preserve unrestricted freedom of navigation without Iranian approvals, tolls, or controls, disputing key elements of the reported arrangement, according to Citi.
Houthi attacks widen the risk beyond Hormuz
Citi added that risks remain elevated outside Hormuz too, pointing to continued Houthi attacks and threats against Saudi-linked shipping in the Red Sea and around Bab el Mandeb. According to Westpac: "Uncertainty remains high as we go into the sixth month of the Iran war." The bank said the strait remains effectively closed and that the Houthis' entry into the conflict is interrupting alternative Red Sea supply routes. U.S. Central Command said it has redirected 55 commercial vessels, disabled two, and boarded two to ensure compliance as of Aug. 9, in a post on X.
Source: CNBC
Trading involves risk.
Risk Disclaimer
