Iran’s Conditions for Reopening Hormuz Drive Oil Prices Higher

International oil markets rose after Iran put forward a series of demands for reopening the Strait of Hormuz, considered one of the world’s most important oil transport corridors.

The price of Brent crude, the international benchmark, rose by approximately 1.2% to reach $84.58 per barrel. Meanwhile, U.S. WTI crude recorded an increase of around 1.1%, trading at $79.28 per barrel.

According to Tehran, no negotiations are currently taking place with the United States. For the strait to be reopened, Iran is demanding an end to U.S. attacks against it and its allies in the region, the lifting of sanctions, the unfreezing of Iranian assets, and compensation for war-related damages.

Meanwhile, U.S. President Donald Trump said on Sunday that the United States and Iran were holding low-level talks.

The Strait of Hormuz remains at the center of the tensions. Since Iran closed it after fighting resumed in July, oil tankers have faced obstacles while attempting to pass through the waterway.

Around 20% of the world’s oil is transported through Hormuz. For this reason, any disruption to tanker traffic has a direct impact on global markets and fuel prices.

At the same time, Iran is negotiating with Oman to ensure the safe passage of ships. However, authorities in Tehran have stressed that reaching an agreement on safe navigation does not necessarily mean the strait will be fully reopened.

The situation has been further worsened by attacks by Houthi rebels, who are backed by Iran. Their actions have disrupted traffic through the Bab al-Mandeb Strait, the waterway linking the Gulf of Aden and the Red Sea.

The consequences of the tensions in the Middle East are also being felt in the U.S. fuel market. Gasoline cost an average of $4.01 per gallon, approximately 8 cents less than a week earlier, but the price remained 34.6% above the level recorded before the war began.