Hormuz Flows Plummet, Oil Prices Hold Steady Amid Strait Dispute

The Strait of Hormuz is a critical waterway that connects the Persian Gulf to the Gulf of Oman, and it has been at the center of a dispute between Iran and the US. The situation has led to a significant reduction in oil flows through the strait, with Hormuz flows falling from 18 million barrels per day to roughly 2 million in August.

This has caused Brent crude prices to hold above $91 overnight, while WTI is near $86. The premium between the two benchmarks is not just about a headline anymore; it's about a supply system that nobody has a plan to restore.

The situation on the ground remains uncertain, with Iran saying the waterway is shut and Washington claiming it is open. Shipowners have stopped listening to both sides and are avoiding the route altogether.