WANA (Aug 17) – Global oil markets opened higher on Monday, with Brent crude rising above $89 a barrel as disruptions in the Strait of Hormuz and uncertainty over the future of Iran-US talks fueled concerns about global oil supplies.

 

Brent crude rose by around 1% to $89.40 a barrel, while West Texas Intermediate (WTI) gained 44 cents to trade at $82.83.

 

The increase extends the upward trend seen over the past week, when both major oil benchmarks gained more than 5%. By Thursday, Brent had climbed to $88.52 a barrel, while WTI reached $82.40.

 

Analysts attribute the recent rise in oil prices largely to two factors. The first is the attacks late last week on three oil tankers operated by the Abu Dhabi National Oil Company, which have severely disrupted shipping through the Strait of Hormuz and brought tanker traffic through the strategic waterway to an almost complete halt.

 

The second factor is growing uncertainty over the future of the so-called Islamabad Agreement between Iran and the United States, amid a deadlock in negotiations over a final deal. Iranian Foreign Minister Abbas Araghchi has also said that Tehran has not yet decided whether to resume talks with Washington.

 

Under the agreement, Iran and the United States were given 60 days to reach a final deal. That deadline expires on Monday.

 

With the 60-day period ending without a new agreement and disruptions continuing in the Strait of Hormuz, pressure on global oil markets could intensify, increasing the risk of further price increases.