Noida, Aug 13 (APAC Media): Crude oil prices held near a two-week high on Thursday as uncertainty over the Strait of Hormuz and continued attacks on commercial shipping kept global energy markets on edge, with traders weighing the risk of prolonged supply disruptions amid ongoing tensions between the United States and Iran.
Brent crude futures for October slipped 0.5% to $88.18 a barrel after earlier touching an intraday high of $90.06. U.S. West Texas Intermediate crude for September fell 0.4% to $82.13 a barrel. Prices have remained elevated as markets assess potential constraints on oil transport through key maritime routes.
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The dispute over the Strait of Hormuz continued to drive sentiment. U.S. President Donald Trump said, “The U.S.A. has total control over the Strait of Hormuz,” while Iranian officials said the waterway remains closed and will not reopen until Tehran’s conditions are met.
Iranian Security Council chief Mohsen Rezaei said, “The Strait of Hormuz won’t open until the U.S. changes behaviour and accepts Iran’s conditions.” He added that any agreement on Iranian-Omani transit arrangements would be separate from the broader status of the strait.
The Persian Gulf Strait Authority also rejected U.S. assertions that the waterway was open, stating, “The Strait of Hormuz remains blocked and will not be reopened until Iran’s conditions are accepted.” The conflicting statements have added to uncertainty for shipping operators and energy markets.
Shipping traffic through the strait has shown limited recovery but remains well below normal levels. Kpler data indicated a slight increase in confirmed vessel crossings, while the analyst showed an average of about 13 ships per day over a five-day period, the lowest since mid-May.
In the Red Sea, renewed violence added to maritime security concerns. Houthi forces reported an attack in the Bab el-Mandeb Strait that killed four cargo-ship crew members and two Yemeni rescuers. The incidents have prompted shipping firms to maintain caution on key routes.
On the supply side, the International Energy Agency said it now expects global oil demand to decline by 1.6 million barrels per day in 2026, while estimating that 8.3 million barrels per day of Gulf production remains offline.
The agency also projects global supply to fall by 4.3 million barrels per day this year.
OPEC, however, maintained a more positive outlook, forecasting demand growth of 600,000 barrels per day in 2026. With the Hormuz dispute unresolved and security risks persisting in key waterways, oil markets are expected to remain highly sensitive to geopolitical developments and any progress toward restoring normal shipping flows.
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Disclaimer: This article is for informational purposes only. APAC Media is not liable for any investment decisions or losses. Please conduct your own research or consult a financial advisor before investing.
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