Oil prices climbed Monday as negotiations between the United States and Iran over reopening the Strait of Hormuz showed no clear signs of progress, with both sides offering conflicting accounts of where talks stand. Brent crude futures rose 1.4 percent to $84.70 a barrel, while U.S. West Texas Intermediate futures gained 1.4 percent to $79.31 a barrel as of Monday morning.

Iran's Supreme National Security Council laid out a list of conditions Saturday for reopening the strait, including an end to the war on all fronts, the lifting of a U.S. counterblockade of Iranian ports, the removal of sanctions, the release of frozen assets, and compensation for wartime damage. Iranian Foreign Minister Abbas Araghchi said Tehran is currently only exchanging messages with Washington through intermediaries and denied that direct talks are underway, while the Revolutionary Guards said the strait would remain closed "until the enemy accepts all our conditions." Tehran has also insisted on retaining control of the waterway and charging tolls for passage, conditions the U.S. has rejected, maintaining that any reopening must preserve unrestricted freedom of navigation without Iranian approvals or fees.

President Donald Trump, speaking to Axios on Sunday, took a measured tone, saying his administration was "low-keying it" and described the situation as "like a chess game," expressing confidence that economic pressure on Iran would eventually force a resolution. Trump noted Iran's severe inflation and lack of funds as leverage, saying, "It will work out." U.S. Central Command reported that as of August 9, it had redirected 55 commercial vessels, disabled two, and boarded two to ensure compliance in the waterway.

The Strait of Hormuz has been effectively closed for nearly six months following the collapse of an April ceasefire, with the conflict tracing back to Iranian strikes on vessels it accused of circumventing its preferred route. Mediators have urged both sides to return to the terms of a June memorandum that outlined a path for peace talks, which included a provision establishing a $300 billion reconstruction fund for Iran. Adding to market pressure, Houthi groups in Yemen have continued attacks on Saudi-linked shipping in the Red Sea and around Bab el Mandeb, disrupting alternative supply routes.

The prolonged closure has driven up energy prices for American consumers, presenting a growing political challenge for Trump ahead of November's midterm elections. Analysts at Westpac noted that uncertainty remains high entering the sixth month of the conflict, with no clear timeline for resolution. Markets are expected to remain volatile as long as the diplomatic impasse continues and both strategic waterways face ongoing disruption.