Oil prices climbed in early Monday trading as investors awaited signs of progress on a deal to reopen the Strait of Hormuz. While US equity futures remained steady, crude gains were driven by uncertainty regarding the critical waterway.
Traders are currently assessing mixed signals from the U.S. and Iran following a weekend where hopes for a breakthrough were dashed. Tehran has stated that the waterway will not reopen without major US concessions, fueling doubts that a deal may not be coming anytime soon.
The lack of progress has bolstered concerns over potential supply disruptions in the Middle East. Market participants continue to watch US-Iran talks for any developments that could pave the way for a deal to secure passage through the Strait.