Brent Crude Ends August Below $90 as Hormuz Corridor Reduces Oil Price Premium

Oil prices have retreated from their July peak, with Brent crude closing the month of August at $88.29 per barrel, its lowest level since late May.

This development is largely attributed to a five-month surge in OPEC+ production and an Iran-Oman maritime arrangement that has begun to calm the premium traders had baked into every barrel passing through the Strait of Hormuz.

The arrangement, announced on August 26, allows designated commercial tankers to transit a maritime safety lane along Oman's territorial waters, bypassing the contested central channel where Iranian naval patrols had repeatedly delayed traffic.

With this development, tanker brokers and shipping indices have begun to reflect lower insurance premiums on Hormuz transits, although the market has not fully unwound the premium.