Global Oil Prices Rise Again Amid Hormuz Uncertainty

Crude oil prices rose again in global markets on Monday as geopolitical tensions and uncertainty over the reopening of the Strait of Hormuz raised concerns about potential supply disruptions.

The upward trend emerged in Asian trading at the start of the week amid continued uncertainty over the situation in the Middle East.

According to Reuters data, the benchmark Brent crude price rose by 91 cents, or 1.09 percent, to US$84.46 per barrel.

Meanwhile, West Texas Intermediate (WTI) crude, the US benchmark, gained 61 cents, or 0.78 percent, to trade at US$78.79 per barrel.

Oil prices had fallen by more than 7 percent last week after reports emerged that diplomatic discussions between Oman and Iran could lead to the reopening of the Strait of Hormuz.

However, Iran later said that although mediation efforts were making progress, a final agreement could not be reached until the United States fulfilled certain conditions.

The statement renewed concerns over global oil supplies.

The Strait of Hormuz is a strategically vital shipping route through which around one-fifth of global oil supplies are transported.

Market analysts expect oil price volatility to continue until there is greater clarity over the resumption of normal commercial shipping through the waterway.