Iran-Hormuz Deal Fails to Reopen Strait, Oil Prices Hold Above $80
The Iran-Hormuz deal has failed to reopen the Strait of Hormuz despite an agreement between Iran and Oman on shipping lanes. Iranian officials have stated that the agreement alone will not reopen the waterway, and Washington must meet additional demands for a complete reopening.
Brent crude settled at $83.55 a barrel on Friday, Aug. 7, up 1.3%, while U.S. West Texas Intermediate settled at $78.18. The market remains uncertain about whether the proposed arrangement will restore normal tanker traffic through Hormuz.
The economic consequences of the Strait's closure are significant, with oil flows averaging 20.4 million barrels a day in the first quarter of 2025 but dropping to 14.6 million barrels a day in the first quarter of 2026 amid the conflict.