Hormuz Optimism Fades Amid Fresh Tanker Attacks and Stalled Talks
Oil prices took another hit on August 14 as market optimism over the reopening of the Strait of Hormuz was dampened by fresh tanker attacks and stalled negotiations between Iran and Oman.
Talks to reopen the waterway had appeared close to a breakthrough earlier in the week, but were still unresolved. Despite this, oil continued to flow out of the Arabian Gulf, with many tankers making the journey with their transponders turned off to avoid detection.
The risk of attack remained high, and Abu Dhabi National Oil Co (ADNOC) reported that two of its vessels had been struck late on Thursday. The International Energy Agency had warned earlier in the week that the global supply gap would widen further this quarter and predicted a steepest annual shortfall in five years for 2026.
The conflict has continued into its sixth month, with oil prices still set for a weekly gain despite Friday's dip. Brent crude sat close to $87 a barrel after dropping 2.2% the day before, while West Texas Intermediate traded around $81.