Oil prices climb as Iran ties Hormuz reopening to key demands
09:23, 10/08/2026, MondayU: Update: 09:23, 10/08/2026, Monday
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Oil prices moved higher Monday after Iran signaled that the Strait of Hormuz would remain closed until Washington addresses Tehran’s demands, adding fresh uncertainty to global energy supplies. Brent crude rose above $84 a barrel, while West Texas Intermediate also gained as markets assessed the potential for prolonged disruption in one of the world’s most important oil shipping routes.
Iranian Foreign Minister Abbas Araghchi said Sunday that reopening the strategic waterway would depend on the United States taking steps that include easing sanctions imposed on Tehran and providing war reparations. His comments indicate that Iran does not currently view reopening the passage as an immediate option.Araghchi also rejected the suggestion that Tehran is engaged in direct negotiations with Washington. His remarks came despite US claims that an agreement could be close, leaving the prospects for a diplomatic breakthrough uncertain.
Hormuz closure keeps energy markets on edge
The Strait of Hormuz remains a major focus for energy traders because of its importance to international oil shipments. Westpac said the waterway was still “effectively closed” and warned that uncertainty remained elevated as the conflict entered its sixth month.
The latest developments have increased concerns that disruptions could persist, potentially putting additional pressure on crude prices and global energy markets. The strategic waterway connects the Persian Gulf with the Gulf of Oman and is a key route for oil exports from the region.
Brent and WTI extend gains
Brent crude futures for October delivery increased 1.09% to $84.46 per barrel. US benchmark West Texas Intermediate for September delivery advanced 0.84% to $78.84.
The gains came as traders weighed the prospect of continued restrictions around the Strait of Hormuz against broader developments in the Iran conflict and the possibility of renewed diplomatic engagement between Tehran and Washington.
Asian markets remain resilient
Despite the renewed volatility in energy markets, major Asian stock indexes moved higher Monday. Japan’s Nikkei 225 advanced 2.1%, while South Korea’s Kospi gained 0.7%. Hong Kong’s Hang Seng Index also increased, rising 0.6%.
The contrasting moves in oil and equities suggest that investors are continuing to monitor the geopolitical risks surrounding Iran while maintaining confidence in parts of the wider Asian market.