Oil prices climb to $85 as uncertainty clouds Hormuz reopening
What's the story
Oil prices have witnessed an uptick on Monday due to the uncertainty surrounding the reopening of the Strait of Hormuz, a key transit route for global oil shipments. Brent crude futures increased 91 cents, or 1.09%, to $84.46 a barrel, while WTI crude futures gained 61 cents, or 0.78%, to $78.79 a barrel. The spike comes after both benchmarks fell over 7% last week on hopes of an Iran-Oman deal to reopen this crucial passageway for oil shipments.
Negotiation status
US conditions must be met before Iran-Oman shipping route reopens
Iran has confirmed that talks with Oman over new shipping routes are progressing. However, nothing is finalized as more US conditions have to be met. These include lifting sanctions and reducing military threats.
The uncertainty surrounding these negotiations continues to keep oil markets on edge, especially after Houthi rebels attacked a Saudi Aramco refinery on Sunday, further complicating the situation for global oil supplies.
Precious metals
Gold prices remain stable after significant weekly gain
Separately, gold prices have remained stable after witnessing their biggest weekly gain since January.
The stability comes as traders analyze a surprise contraction in the US jobs market, easing fears of an interest rate hike.
The metal was trading close to $4,345 per ounce in early trading on Monday, having gained over 7% last week.
Silver also rose by 0.6% to $63.92 per ounce while platinum and palladium remained relatively unchanged during this period of volatility in commodity markets.