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Hormuz: Conditions and Oil
Oil prices rose Monday as Iran set conditions for reopening the Strait of Hormuz, with Brent crude futures for October delivery climbing 1.09% to $84.46 a barrel and U.S. West Texas Intermediate futures for September rising 0.84% to $78.84.
“Brent crude futures for October delivery climbed 1.09% to $84.46 a barrel”
Iranian Foreign Minister Abbas Araghchi said Sunday that the strategic waterway would not reopen until Washington meets conditions including easing sanctions and paying war reparations, and he added that Tehran is not currently in direct talks with the US despite Washington’s claim that a deal is near.
Westpac said, "The Strait of Hormuz remains effectively closed," and the same report tied the uncertainty to the Iran war entering its sixth month.
The Aajil report also tied market movement to expectations of progress in talks aimed at reopening the strait, saying WTI crude futures fell 5.69% to settle at $75.77 a barrel and Brent crude declined 5.26% to $79.36 a barrel.
Oman Talks and Threats
Iranian officials and U.S. statements framed the Strait of Hormuz talks as moving through Oman rather than direct U.S.-Iran negotiations, with Iranian Foreign Ministry spokesman Saeed Khatibzadeh saying, "We are not currently negotiating with the United States."
Khatibzadeh said, "Our negotiations are with Oman to secure passage through the Hormuz Strait," while the Aajil report said U.S. Secretary of State Marco Rubio told reporters that Iran and the Sultanate of Oman are making progress in talks over the Strait of Hormuz.
In a separate Aajil account, President Donald Trump warned that if negotiations collapse Tehran would face a "severe" military action, and he said in an interview with Fox News, "We were about to carry out a massive strike, the biggest since World War II."
The ABC News live updates also quoted Iranian Foreign Minister Abbas Araghchi saying negotiations with Oman concerning the Strait of Hormuz are in their "final stages" and are "on the way to being finalized," according to Iranian state media.
Shipping, Blockade, and Stakes
The U.S. Army said about 1,000 ships passed through the Strait of Hormuz with the help of American forces in the past three months, while it said the southern route through the Hormuz Strait remains open to commercial ships seeking to traverse the international waterway.
“about 1,000 ships passed through the Strait of Hormuz”
The same report said Centcom changed the course of 44 commercial ships, disabled two ships, and boarded two others as part of its operations in the region as of August 3, and it described these measures as part of American operations aimed at protecting maritime traffic.
In the ABC News account, Iran asserted that an agreement with Oman on traffic control is practically closed but "does not justify reopening shipping through those waters," and it said Abbas Araqchi confirmed the investigations while stressing reopening depends on other conditions including a "compensation from the United States to Iran."
The Aajil report on Iran’s stance added that an IRGC spokesperson said reopening the Strait of Hormuz requires the United States to meet Iran's demands and urged Washington to distance itself from negotiations with Oman, framing the talks as tied to broader war-ending arrangements.