KARACHI: Global oil prices moved higher Monday as uncertainty surrounding the reopening of the Strait of Hormuz continued to weigh on energy markets and fuel concerns about possible disruptions to crude supplies.

Brent crude rose by more than 1% during Asian trading, climbing above $84 a barrel. U.S. crude prices also gained more than 1% as traders closely monitored developments surrounding the strategically important waterway.

The Strait of Hormuz is one of the world’s most important energy corridors, carrying a significant portion of global oil supplies. Continued uncertainty over shipping through the route could increase transportation risks and place additional upward pressure on international crude prices.

Iran has indicated that discussions with Oman over alternative shipping arrangements are nearing completion. However, Tehran has said the United States must still meet additional conditions before arrangements related to the waterway can proceed.

The unresolved situation has kept traders cautious, with the possibility of prolonged disruptions remaining a key concern for energy markets. Any sustained difficulty in moving oil through the Strait could have wider consequences for global fuel prices and energy costs.

Markets are now expected to remain highly sensitive to diplomatic and shipping developments around Hormuz. A clearer agreement that restores confidence in maritime traffic could ease some of the pressure on crude prices, while further delays or disruptions could increase volatility.

Why It Matters

Developments around the Strait of Hormuz are closely watched because disruptions along the route can affect global oil supply flows. Higher crude prices can eventually increase fuel and transportation costs in importing countries, adding pressure to consumers and businesses.