Oil prices are climbing higher as Iran’s latest demands for reopening the Strait of Hormuz dampen hopes for a return to stability in global energy markets. Brent crude, the international benchmark, rose more than 1 percent on Monday as Tehran’s insistence that the critical waterway will not reopen without major concessions from the United States stoked market anxiety.

Brent futures for October stood at $83.77 a barrel at 2:30 GMT, marking an approximate 16 percent increase compared to pre-war levels. This surge reflects ongoing market apprehension, with traders adopting a more cautious stance due to the lack of concrete progress in negotiations.

Iranian Minister of Foreign Affairs Abbas Araghchi indicated on Sunday that while Iran and Oman were nearing an agreement concerning the Strait of Hormuz, the waterway's reopening is contingent upon Washington meeting specific conditions. These demands include the easing of sanctions and the payment of war reparations.

Shipping in the strait, which previously handled about one-fifth of global oil supplies, has been severely disrupted since the conflict between the US and Iran began in late February. This disruption has led to the most significant energy shock in recorded history.

Data from ship-tracking platform MarineTraffic reveals a drastic reduction in transits, with only eight to 15 vessels crossing the strait daily between August 4 and August 6, a stark contrast to the roughly 130 transits observed before the war. This has significantly impacted global energy supply chains.

Iran has maintained its right to control shipping in the strait, challenging international maritime law's principle of freedom of navigation. Tehran has threatened to target commercial vessels attempting passage through unapproved routes. This stance has been a source of ongoing tension and uncertainty.

The United Arab Emirates recently condemned Tehran, citing an alleged Iranian missile attack on a vessel belonging to the Abu Dhabi National Oil Company. According to the International Maritime Organization, the region has witnessed at least 64 violent incidents and 17 fatalities involving commercial vessels since the war commenced, with Iran being implicated in most of these events.

Despite the renewed volatility in energy markets, Asian stock markets showed resilience on Monday morning. Major indices in Japan, South Korea, and Hong Kong experienced substantial gains, with Japan’s Nikkei 225 rising 2.1 percent and South Korea’s Kospi increasing by 0.7 percent.