Oil prices extended gains on August 7 as optimism faded over a full reopening of the Strait of Hormuz. Reports that Iran could seek to bar US- and Israeli-linked vessels under a possible arrangement with Oman revived concerns over shipping through the strategic waterway, which carries a major share of global oil and LNG. Both main crude benchmarks rose about one percent, while most stock markets weakened as traders reassessed inflation risks and the outlook for interest rates.