Oil prices surged on Monday as US strategic petroleum reserves dropped below 300 million barrels for the first time in 43 years and optimism over a Washington-Tehran agreement on the Strait of Hormuz diminished.
Brent crude rose more than 4% to top $85 a barrel, while West Texas Intermediate climbed to $81.50. The Energy Department reported that inventories fell to 298.7 million barrels as of August 7, the lowest level since January 1983.
The reserve, established in 1975, has been drawn down significantly after President Donald Trump ordered the release of 172 million barrels in March to stabilise global markets following Iran's disruption of crude exports through the strait. Trump told Axios on Sunday that the US is "low-keying" negotiations with Tehran to reopen shipping lanes.