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.

Diageo, the world’s largest spirits maker, has announced a $1 billion cost-cutting and restructuring programme as new chief executive Dave Lewis moves to address years of weak sales and prepare the company for slower growth.

The drinks group, whose brands include Johnnie Walker, Guinness and Smirnoff, said it was abandoning its previous medium-term target of 5% to 7% organic net sales growth. It now expects growth in the low single digits through the 2029 financial year.

Investors responded positively to the announcement, viewing the plan as evidence that Lewis is taking decisive action to improve the company’s performance after a prolonged period of stagnant or declining sales.

Lewis, who became chief executive after senior roles at Tesco and Unilever, has previously gained a reputation for aggressive cost reduction. He was nicknamed “Drastic Dave” during his time at Tesco because of the scale of restructuring undertaken under his leadership.

The company has not yet disclosed how many jobs could be affected by the latest programme. Consultations remain under way in several regions, but Lewis warned that the restructuring would have a significant effect on employees as Diageo changes its cost structure.

The company is expected to make substantial changes to back-office operations across its global business. Areas with overlapping responsibilities between country, regional and global teams are likely to face further restructuring.

Diageo also plans to reduce spending on production capacity that was established in anticipation of stronger demand that did not materialise.

The company said the savings programme will be implemented over three years. The wider restructuring is expected to involve total costs of about $1.2 billion, with around 70% already incurred.

The announcement comes as the global beverages industry faces a difficult period. Consumer drinking habits have changed significantly since the pandemic, with customers changing what they drink, how much they consume and where they purchase alcoholic beverages.

High inflation and pressure on household budgets have also weakened demand in several markets. At the same time, younger consumers and health-conscious customers have increasingly turned towards low- and no-alcohol alternatives.

Diageo is not alone in responding to the changing market. Other major drinks companies, including Heineken and Pernod Ricard, have introduced cost-cutting programmes and workforce reductions as they attempt to protect profits while adapting to weaker demand.

Lewis’s restructuring marks a major change in direction for Diageo as the company prepares for a period of slower sales growth and seeks to improve efficiency across its international operations.