Oil rises over 2% as Iran holds firm on Hormuz reopening terms
September 28, 2026
Oil prices climbed more than 2% on Monday as uncertainty over the reopening of the Strait of Hormuz continued to fuel concerns about global crude oil supply and energy market disruptions. Iran maintained its conditions for reopening the strategic shipping route, while the United States rejected Tehran’s proposal, keeping geopolitical tensions elevated across the Middle East.
At around 04:31 ET (08:31 GMT), Brent crude oil futures for November rose 2.7% to around $107.08 per barrel, while WTI crude oil futures gained 2.4% to approximately $94.66 per barrel. Brent crude has risen about 18% during the month, highlighting the growing impact of geopolitical risk on global oil prices.
Strait of Hormuz Remains Key to Global Oil Supply
The Strait of Hormuz remains at the center of the latest oil market concerns. The strategic waterway is one of the world's most important energy shipping routes, with roughly one-fifth of global oil and liquefied natural gas supplies having moved through the strait before the conflict disrupted normal shipping activity.
Iran has proposed reopening the Strait of Hormuz within seven days while broader negotiations continue. However, Tehran has linked the reopening to several conditions, including the lifting of a U.S. naval blockade, reduced military pressure, removal of sanctions affecting Iranian oil exports and a ceasefire.
The United States has rejected Iran's proposal, leaving investors and energy traders focused on whether diplomatic negotiations can reduce tensions and restore normal oil transportation through the region.
Iran-US Negotiations Put Oil Markets on Alert
Despite the disagreement over reopening terms, reports indicate that negotiations between the United States and Iran could resume this week. Qatar has reportedly been involved in diplomatic efforts between the two sides as markets closely monitor developments.
Any progress toward a U.S.-Iran ceasefire, Strait of Hormuz reopening or easing of sanctions on Iranian oil exports could reduce supply concerns and potentially ease the geopolitical risk premium in crude oil prices.
On the other hand, a prolonged disruption could keep Brent oil prices, WTI crude prices and global energy costs under pressure from tight supply expectations.
Red Sea Attacks Add to Energy Supply Concerns
Oil market uncertainty is also being increased by renewed attacks involving Houthi forces in Yemen. Saudi Arabia reported intercepting ballistic missiles and drones launched by the Houthis, while commercial shipping in the Red Sea has also faced increased security risks.
The combination of Strait of Hormuz disruption, Red Sea shipping risks and Middle East geopolitical tensions is creating additional uncertainty for global energy markets.
Gulf oil producers have been forced to explore alternative transportation routes for crude exports as shipping through traditional channels becomes more difficult.
Oil Supply and Fuel Prices in Focus
Although shipping activity through the Strait of Hormuz has declined sharply, there have been indications that some crude oil is still moving through the waterway. Reports suggested that more than 20 million barrels of oil had transited the strait over the weekend.
Markets are also closely monitoring refined petroleum products. Diesel prices in Europe and the United States have reached record levels amid disruptions affecting oil and refined-product exports from the Middle East and Russia.
Higher crude oil prices and elevated diesel costs could increase pressure on transportation, manufacturing and other energy-intensive industries if supply disruptions persist.
What This Means for Oil Markets
The latest developments keep crude oil prices, Brent futures, WTI futures, global oil supply, energy stocks and fuel markets firmly in focus.
For oil traders and investors, the key factors to watch include:
Developments in U.S.-Iran negotiations
The timing and conditions for reopening the Strait of Hormuz
Changes in Iranian oil exports and sanctions
Security risks in the Red Sea and Gulf region
Houthi attacks on commercial and energy infrastructure
Global crude oil inventories and supply levels
Brent crude and WTI oil price movements
European and U.S. diesel and refined-product prices
A sustained disruption to one of the world's most important energy corridors could continue to influence global oil prices, inflation expectations, transportation costs and financial markets.
Market Snapshot
Brent Crude Oil: Around $107.08 per barrel, up 2.7%
WTI Crude Oil: Around $94.66 per barrel, up 2.4%
Brent Monthly Gain: Approximately 18%
Key Market Driver: Strait of Hormuz reopening uncertainty and Middle East supply risks