London (HRNW)- Global oil prices remained broadly stable after Iran set conditions for the full reopening of the Strait of Hormuz, raising concerns among investors that the restoration of normal commercial shipping through the strategic waterway could take longer than previously expected.
According to Reuters, oil prices initially rose during trading but later lost momentum following Iran’s position on the reopening of the strait.
At around 11:43 am Pakistan time, Brent crude was trading at approximately $83.54 per barrel, down about 1 percent. Meanwhile, West Texas Intermediate (WTI) crude fell by 15 cents, or 0.2 percent, to around $78.03 per barrel.
Oil prices recorded a significant decline in the global market last week amid expectations that progress in talks between Iran and Oman could lead to an agreement restoring commercial shipping through the Strait of Hormuz.
According to Reuters, both Brent and WTI benchmark prices declined by more than 7 percent last week.
However, investor optimism was affected after Iran made clear that the full reopening of the Strait of Hormuz would depend on the United States meeting certain conditions.
Iran has maintained that the restoration of normal maritime traffic through the strategic waterway cannot be separated from US policies in the region and Tehran’s demands.
The developments have increased uncertainty in global energy markets, with investors concerned that the full restoration of one of the world’s most important oil shipping routes could take longer than previously anticipated.
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