Oil Prices Skyrocket as Hopes for U.S.-Iran Strait of Hormuz Deal Diminish
On Monday, August 11, oil prices experienced a significant surge. The ongoing crisis in the Strait of Hormuz shows no signs of a swift resolution, leading to a sharp increase in the value of both U.S. West Texas Intermediate (WTI) futures and Brent crude. WTI futures saw an approximate 5% increase, closing at $82.13 per barrel. Similarly, Brent crude — the international benchmark — settled around 5% higher at $87.72 a barrel. This reflects the growing investor anxiety over the state of global energy supplies.
Iran’s Foreign Ministry spokesman, Esmail Baghaei, made it clear that the U.S. must first lift its naval blockade before Tehran would agree to reopen the critical waterway. “As long as the U.S. naval blockade continues, the necessary conditions for the reopening of the Strait of Hormuz do not exist,” Baghaei stated. In a recent interview with Axios, President Trump implied that the U.S. is only “semi-negotiating” with Iran, casting further doubt on the timeline for any deal.
The Strait of Hormuz, which is a conduit for approximately one-fifth of the world’s oil supplies, has been effectively closed since the U.S.-Iran conflict began in late February 2026. This has triggered what analysts are referring to as the largest energy disruption in recorded history. Shipping traffic through the strait has collapsed, with ship-tracking data showing only 8 to 15 vessels crossing daily in early August, compared to roughly 130 transits before the war. Adding to the pressure on global markets, Yemen’s Houthis have also resumed attacks, disrupting alternative Red Sea supply routes.
Source: CNBC – Oil prices today: Uncertainty over U.S.-Iran Strait of Hormuz deal