Hormuz Impasse Sends Oil Prices Soaring Amid US-Iran Conflict

The war between the US and Iran has led to a prolonged crisis in the Strait of Hormuz, causing disruptions to Middle East energy supplies. Nearly six months after the conflict began, hopes for a diplomatic breakthrough have faded.

The interim ceasefire agreed on June 17 has effectively collapsed, and neither Washington nor Tehran appears willing to compromise over the future of the Strait of Hormuz. As a result, both sides are digging in.

Iran warned that it would escalate tensions unless Washington fully implemented the interim peace deal within weeks. President Trump said on July 7 that the pact was 'over', and has since insisted Washington is moving closer to defeating Iran.

The stalemate is forcing traders to contend with restrictions on shipping through the Strait of Hormuz, which could persist for months. This shift in expectations explains why crude oil prices have stabilized around $90 a barrel, roughly 50 percent higher than at the start of the year.