Oil prices moved higher Monday as prospects for a near-term resolution to the confrontation between the United States and Iran over the Strait of Hormuz continued to fade.

Iran and Oman had recently suggested that the two sides were approaching an arrangement that could reopen the vital waterway to oil shipments and other commercial traffic. However, Tehran has presented an extensive set of conditions that it says Washington must satisfy before vessels can once again travel through the strait without restrictions. The demands have underscored Iran’s intention to retain the waterway as a bargaining tool. President Trump told Axios on Sunday that he expects Iran will ultimately yield as mounting economic pressure and inflation take their toll.

Oil Prices Move Higher

Brent crude, the international benchmark, gained about 1.5 percent, trading between $84 and $85 per barrel. The benchmark remains roughly 16 percent above its level immediately before the war began.

West Texas Intermediate, the U.S. benchmark, also edged higher, climbing to slightly above $79 per barrel.

Markets continue to closely monitor the disruption affecting ships traveling through the Strait of Hormuz, the strategically important passage between Iran and Oman that normally transports roughly one-fifth of global oil supplies. Traders are also watching activity by the Iranian-backed Houthi militia in Yemen, which has sought to limit shipping through the Bab al-Mandab Strait at the southern entrance to the Red Sea. Saudi Arabia has relied on that route as an alternative to the Strait of Hormuz.

Shipping Through Hormuz Remains Limited

Only a relatively small number of vessels crossed the Strait of Hormuz over the weekend, with traffic continuing at a tiny fraction of normal levels. Maritime data firm Kpler estimates that approximately 12 ships a day have recently made the crossing. Before the war, the waterway handled an average of about 130 vessels each day.

Shipping through the Bab al-Mandab Strait has remained comparatively steady. Kpler recorded an average of just under 40 vessels per day from Friday through Sunday. Traffic has not experienced a major additional decline following Houthi threats against Saudi vessels in the area. However, shipping activity there had already fallen to its current level in 2023, when the Houthis began attacking commercial vessels in response to Israel’s war in Gaza.

The United Arab Emirates’ foreign ministry said Saturday that an Iranian strike had hit a tanker operated by the state-owned Abu Dhabi National Oil Company while the vessel was passing through the Strait of Hormuz. The company previously reported that at least 15 of its ships had come under attack in the waterway since the conflict began. Those incidents have resulted in one crew member being killed and 20 others injured.

Global Stocks Show Little Movement

S&P 500 futures indicated that U.S. stocks were headed for a largely unchanged opening Monday. The benchmark index finished Friday’s session at a new record high.

European markets were similarly subdued, with the Stoxx 600, which tracks major companies across the region, showing little movement.

Asian stocks were generally stronger despite the region’s heavy dependence on imported oil and natural gas. Japan’s Nikkei 225 gained more than 2 percent, while South Korea’s KOSPI and Hong Kong’s Hang Seng Index each advanced by roughly 1 percent.

Gasoline Prices Edge Lower

The national average gasoline price slipped slightly Monday to approximately $4.01 per gallon, according to AAA. Although pump prices have fallen by around 10 cents over the past week, motorists are still paying about 35 percent more on average than they were before the war began.

Changes in gasoline prices typically lag movements in crude oil prices by several days rather than immediately matching them.

Diesel prices also declined modestly Monday, reaching an average of approximately $5.30 per gallon. Despite the recent decrease, diesel remains about 41 percent more expensive than it was at the beginning of the war.