Overview
- Iran’s top security official said Tuesday that the Strait of Hormuz will remain closed until the United States meets broad conditions including release of frozen assets, withdrawal of forces, sanctions relief and compensation.
- Renewed attacks on ships in the Strait of Hormuz and the Bab el-Mandeb on Tuesday have pushed daily transits to single digits and intensified insurers’ and shippers’ costs.
- Brent crude has risen toward $89–$90 a barrel and U.S. WTI into the low $80s as markets price a persistent geopolitical premium and headline-driven volatility.
- Industry data showed a surprise U.S. crude stock build of about 9.1 million barrels for the week to Aug. 7 while the U.S. Strategic Petroleum Reserve fell below 300 million barrels, weakening the global supply cushion.
- The U.S. Energy Information Administration now expects roughly 600,000 barrels per day of Middle East supply disruptions to persist through the end of 2027, keeping inflationary and economic risks elevated.