Oil prices rose on Monday as traders assessed the prospects of progress in negotiations between the United States and Iran that could eventually restore shipping through the Strait of Hormuz.

Brent crude futures for October delivery increased 1.04% to $84.42 a barrel in early trading, while US West Texas Intermediate crude for September delivery rose 0.83% to $78.83.

The gains came as uncertainty remained over when the strategically important waterway could reopen fully to international shipping. The Strait of Hormuz is a key route for global energy supplies, carrying about one-fifth of the world’s oil and liquefied natural gas shipments.

Iran’s Revolutionary Guards said on Sunday that the strait would remain closed until Washington met a series of demands. Tehran has also insisted on retaining control over the waterway following the conflict and has proposed charging fees for ships using the route, a position opposed by the United States.

The restrictions have added pressure to global energy markets and raised concerns about the security of oil and gas supplies.

Iran released conditions on Saturday for reopening the strait, according to the Tasnim news agency. The demands include an end to the war across all fronts, the lifting of a US counterblockade on Iranian ports, the removal of sanctions, the release of frozen Iranian assets and compensation for damage caused during the conflict.

The demands resemble provisions contained in a June memorandum that outlined a possible route toward peace talks. That agreement included plans for a $300 billion reconstruction fund for Iran.

The Revolutionary Guards said the blockade would continue until Iran’s conditions were accepted, describing the strait as a war zone rather than simply a shipping route.

The latest developments have complicated efforts by mediators to bring the two sides back to the terms of the June memorandum. Attacks around the waterway contributed to the collapse of an April ceasefire, increasing concerns that a prolonged disruption could further affect energy markets.

US President Donald Trump struck a more restrained tone when discussing the negotiations. In an interview, he said Washington was “low-keying it” and only “semi-negotiating” with Tehran.

Trump said the United States was watching Iran’s economic situation, pointing to high inflation and financial pressures facing the country.

“It will work out,” Trump said, comparing the situation to a chess game.

For oil traders, the key question remains whether the two governments can reach an agreement that would allow commercial shipping to resume safely. Any prolonged disruption could keep upward pressure on crude prices, while a successful deal could ease supply concerns and reduce the market’s risk premium.

Sony Corp. and Taiwan Semiconductor Manufacturing Co. (TSMC) are planning to invest about $6.3 billion (€5.4 billion) in a joint venture to produce advanced image sensors in Japan, according to Nikkei.

The proposed venture would bring together the world’s leading image sensor maker and the largest contract chip manufacturer as demand for high-performance sensors continues to grow in smartphones, vehicles and other electronic devices.

Under the reported plan, Sony would hold a 60% stake in the joint venture, while TSMC would own the remaining 40%. The companies are expected to finalise an investment agreement in the coming months.

Mass production could begin as early as 2029, Nikkei reported.

Production would take place at Sony Semiconductor Solutions’ existing facility in Kumamoto, southwestern Japan. The companies are expected to work together on the development and manufacturing of high-performance camera sensors at the site.

Image sensors convert light into electrical signals and are essential components in digital cameras and smartphone cameras. They are also increasingly used in vehicles for systems such as driver assistance, automated driving and monitoring.

Sony has established a dominant position in the global image sensor market, supplying components to major electronics and automotive companies. TSMC, meanwhile, operates semiconductor manufacturing facilities for technology companies around the world.

The proposed investment comes as manufacturers seek to expand advanced semiconductor production and strengthen supply chains. Japan has also been encouraging investment in domestic chip manufacturing as part of efforts to strengthen its semiconductor industry.

TSMC has already expanded its presence in Japan through its Kumamoto operations. The company is building semiconductor manufacturing capacity in the country as demand rises for chips used in automobiles, consumer electronics and industrial applications.

The planned image sensor venture would deepen cooperation between Sony and TSMC while giving both companies an opportunity to expand production of advanced components in Japan.

TSMC’s latest financial figures show continued growth in semiconductor demand. The company reported revenue of approximately NT$467.58 billion (€12.6 billion) in July 2026, up 5.6% from June and 44.7% compared with July 2025.

Revenue for the first seven months of 2026 reached NT$2,872.06 billion (€77.6 billion), representing a 37% increase from the same period a year earlier.

If completed, the Sony-TSMC venture would represent one of the larger planned investments in Japan’s semiconductor sector and strengthen cooperation between two of Asia’s most important technology companies.