Key Points
- Brent crude holds near $88 a barrel
- WTI remains above $82 after sharp gains
ISLAMABAD: Oil prices rose further on Tuesday, holding near their highest level in more than a week as hopes faded for a US-Iran agreement that could reopen the strategically vital Strait of Hormuz.
Brent crude, the international benchmark, was around $87.80 per barrel, while US West Texas Intermediate (WTI) crude traded near $82.20.
Both benchmarks had gained more than 5 per cent in the previous session as negotiations to end the conflict and restore shipping through the Strait of Hormuz appeared to lose momentum.
Weekend vessel traffic diverges
Maritime traffic through the Strait of Hormuz weakened markedly over the weekend. Confirmed crossings fell from 15 on Friday to 11 on Saturday and six on Sunday, with 32 vessels crossing between 7 and 9 August. Routing remained concentrated,… pic.twitter.com/YcFZ6TNbvO
— MarineTraffic (@MarineTraffic) August 10, 2026
The latest rally came after US President Donald Trump demanded compensation from Iran for war-related damage, adding another obstacle to efforts to reach an understanding over the waterway.
Iran demands keep the oil price high
Iran has also set conditions for reopening the strait, leaving the timing of any return to normal shipping uncertain.
The Strait of Hormuz is one of the world’s most important energy chokepoints. Before the current disruption, roughly one-fifth of global oil and liquefied natural gas supplies normally passed through the waterway.
The prolonged disruption has therefore kept traders focused on the risk of further supply shortages and higher freight and insurance costs.
ALSO READ: Oil Prices Soar as Hormuz Uncertainty Persists
The impact is already visible in shipping flows. Oil exports through the Strait of Hormuz fell to about 3 million barrels per day in the week ending August 7, from 4.4 million barrels per day a week earlier, according to Barclays estimates cited by Reuters.
The reduced traffic has added to concerns over the availability of Middle Eastern crude in international markets.
Iranian Foreign Ministry spokesperson Esmail Baghaei said Iran will not reopen the Strait of Hormuz until the United States ends its naval blockade on Iranian ports. Iran wants the U.S. to lift blockade, pay compensation for months of war damage, lift economic sanctions and… pic.twitter.com/jABYrN4exa
— The Associated Press (@AP) August 10, 2026
The market is also facing additional disruption elsewhere in the region.
Saudi Aramco delayed the resumption of operations at its Jazan refinery that was attacked, as claimed by the Houthis, raising concerns about risks to energy infrastructure and shipping routes beyond Hormuz.
Oil had briefly fallen earlier this month on expectations that negotiations involving the United States, Iran and Oman could lead to an agreement to reopen the Strait of Hormuz.
The subsequent reversal highlights how heavily crude prices remain tied to diplomatic developments.
For oil-importing economies, the renewed rise threatens to increase fuel and transport costs and could complicate efforts to contain inflation.
Any further deterioration in the security situation or a prolonged delay in reopening the waterway could put additional upward pressure on crude prices.
Recent oil track
Over the past six months, global oil prices have undergone an extraordinary swing, driven primarily by the US-Israel war with Iran, disruptions around the Strait of Hormuz and shifting expectations of a diplomatic settlement.
Brent crude began 2026 near $62 a barrel and climbed steadily to around $70 by the end of January, before settling around $71 in late February.
The market changed dramatically after the conflict erupted on February 28. Brent surged above $85 in early March, crossed $100 within days and reached about $126 a barrel in late March.
It briefly touched nearly $138 in early April in the futures market, its highest level of the year, as the closure of the Strait of Hormuz threatened a major disruption to global oil supplies.
Prices subsequently retreated as fears of a prolonged supply shock eased. Brent fell back towards $100 in May and dropped below $90 in June. By late June, it was around $74, before briefly touching roughly $70 in early July.
Oil then rebounded in July, with Brent climbing into the mid-$80s, before falling sharply again in early August as hopes grew that arrangements could restore shipping through the Strait of Hormuz.
Brent had averaged about $101 during the main phase of the conflict, despite earlier forecasts that crude could reach $150 or even $200.
