Oil Wavers as U.S.-Iran Hormuz Deal Remains Elusive

Oil prices were choppy Monday as traders weighed conflicting signals on whether the U.S. and Iran can reach a deal to reopen the Strait of Hormuz. Brent crude for October delivery rose 0.81% to $84.23 a barrel, while U.S. West Texas Intermediate advanced 0.83% to $78.83.

Iranian Foreign Minister Abbas Araghchi said Tehran is not currently in direct talks with Washington, and Iran has asked for compensation as a condition of reopening the waterway. The strait remains effectively closed, and Houthi activity is disrupting alternative Red Sea routes, keeping a risk premium in crude.

The disruption has been lucrative for integrated producers. The five oil supermajors — including Chevron and BP — generated a combined $48 billion in second-quarter profit and nearly $90 billion in cash generation, an all-time high, on the back of elevated prices.