Oil prices rose on Monday, with Brent crude gaining 0.9% to USD 84.32 a barrel as uncertainty persisted over the reopening of the Strait of Hormuz.
US crude climbed 0.7% to USD 78.74 a barrel, while commercial shipping through the strategically important waterway remained severely disrupted. Iran said an agreement with Oman on new shipping lanes was in its final stages, but tied a full reopening to additional US conditions.
Markets were also assessing prospects for a broader Gulf peace agreement and its possible effect on global energy supplies. Continued disruption through Hormuz could keep crude prices under pressure, as the waterway remains a major route for global oil shipments.
Asian equities edged higher after gains on Wall Street. Japan’s Nikkei rose 0.6%, South Korea’s benchmark gained 0.5%, and MSCI’s broad Asia-Pacific index outside Japan added 0.3%.
Investors also turned their attention to Wednesday’s US consumer price report. Analysts cited in the source expect headline inflation to rise 0.1% and core inflation to increase 0.2%.
JPMorgan’s chief US economist, Michael Feroli, forecast core CPI growth of 0.22%, saying that level would likely not be enough to trigger a Federal Reserve rate increase in September. Futures were pricing about a 44% chance of a September move, down from 67% a week earlier.
Read: Oil Prices Rise as Iran Hormuz Plan Revives Supply Fears
Gold held near USD 4,342 an ounce after gaining more than 7% the previous week, while the US dollar remained broadly weaker following the recent decline in bond yields.
