Oil Prices Hit $80 as U.S.-Iran Strait of Hormuz Deal Doubts Grow

U.S. oil prices rose above $80 a barrel as traders grew increasingly doubtful that Washington and Tehran will reach an agreement over the Strait of Hormuz, the narrow waterway between Iran and Oman through which a large share of the world's seaborne oil trade passes. The advance reflected growing unease in energy markets over the prospects for a near-term resolution.

Traders said mixed signals from both governments have complicated efforts to gauge how close a deal might be. Analysts noted that any disruption to shipping through the strait would ripple through global energy supply chains, given the volume of crude and liquefied natural gas that transits the route daily. The uncertainty has added a risk premium to oil prices in recent sessions.

Energy markets are now watching for further statements from Washington and Tehran for clarity on the state of negotiations. Analysts said the direction of oil prices in the near term will likely hinge on whether the two sides signal renewed progress or further stalemate over access to the strait.