Oil Prices Flat as Strait of Hormuz Talks Stall

Global oil prices remained largely unchanged on Monday, 10 August, following a morning session where initial gains evaporated amid uncertainty surrounding negotiations to reopen the Strait of Hormuz. Progress in these talks appeared hampered by continued demands from Iran regarding compensation for alleged US attacks and other conditions before any reopening could occur.

By early afternoon GMT, Brent crude futures were trading flat at $83.54 per barrel, while US West Texas Intermediate slipped slightly to $78.03 after falling 0.2%. Both benchmarks had declined by over seven percent the previous week as market expectations grew that Iran and Oman might soon reach an agreement on restoring access through this vital waterway.

Prior to recent hostilities, the Strait of Hormuz facilitated approximately one-fifth of all global oil shipments. Tehran has stated that negotiations with Oman are in their final stages but insisted that any reopening depends on Washington meeting additional demands. Iranian Foreign Minister Abbas Araqchi confirmed no talks were currently underway between Iran and the US, noting that discussions would not proceed while the United States remained in breach of an interim deal signed last June.

Regional tensions escalated further when Yemen’s Houthi group claimed to have attacked Saudi Aramco’s Jazan refinery on Sunday. The fire was reportedly extinguished quickly with no injuries reported, though officials did not disclose the cause. This incident occurred two days after Saudi Arabia entered a defence agreement with Turkey and Pakistan aimed at reinforcing collective security amidst ongoing regional instability.

Separately, Abu Dhabi National Oil Company revealed that fifteen of its vessels had been attacked while transiting the Strait since the conflict began. The Houthis also declared a naval blockade against Saudi Arabia in the Red Sea last month, though Saudi officials have denied these claims.