Oil Prices Rise as Hormuz Talks Stall, Asian Stocks Gain

Global oil prices rose as peace talks in the Gulf showed little progress, while Asian stock markets broadly strengthened on Monday, with most shares trading higher.

Investor sentiment was boosted by weaker-than-expected U.S. employment data, which increased expectations that the U.S. Federal Reserve may not raise interest rates in the near term. The positive trend on Wall Street also supported Asian markets.

Meanwhile, uncertainty continued over the situation in the Strait of Hormuz. Iran said on Sunday that an agreement with Oman on establishing new routes for ships passing through the strategic waterway was in its final stages.

However, Tehran made clear that the waterway would not return to normal operations until the United States fulfilled other conditions set by Iran.

With oil shipments through the Strait of Hormuz remaining severely restricted, crude prices rose in global markets.

Brent crude increased 0.9% to $84.32 per barrel, while U.S. crude rose 0.7% to $78.74 per barrel.

The latest increase in fuel prices has added significance to U.S. consumer price data for July, due to be released on Wednesday. Analysts expect headline inflation to rise by 0.1%, while core inflation could increase by 0.2%.