Global oil prices climbed on Monday as optimism faded over the prospects of an imminent agreement between the United States and Iran to resolve their standoff over the Strait of Hormuz.

Iran and Oman had recently indicated that negotiations were nearing an agreement that could allow oil shipments and other commercial traffic to resume through the strategically important waterway.

However, expectations of a quick resolution have weakened after Tehran presented a series of demands it says Washington must meet before vessels can again move freely through the strait.

Iran’s position has raised concerns that Tehran intends to continue using control of the Strait of Hormuz as leverage in negotiations with the United States.

The uncertainty has renewed pressure on global energy markets, with traders closely watching developments surrounding the waterway, which has historically carried a significant share of the world’s traded oil and natural gas.

President Donald Trump said Sunday that he believes Iran will eventually agree to a deal, arguing that mounting economic difficulties and inflation will increase pressure on Tehran to reach an agreement.

Despite Trump’s optimism, the gap between Washington and Tehran remains significant, leaving uncertainty over when normal commercial shipping through the Strait of Hormuz could resume.

The continued disruption has heightened concerns about global oil supplies and shipping costs, keeping energy markets sensitive to any sign of progress—or further escalation—in negotiations.