Iran Strait of Hormuz Attacks Send Oil Prices Soaring

Oil prices surged as Iran attacked targets in the Strait of Hormuz, further escalating tensions in the Middle East. The semi-official Fars News Agency reported that explosions occurred near Qeshm Island on August 6 night local time. This move comes after a deal between Iran and Oman, which would bar US ships from the strait and require compensation from hostile countries to use it.

The West Texas Intermediate (WTI) crude oil price rose above $78 a barrel, while Brent settled around $82. According to Rob Haworth, senior investment strategy director at US Bank Asset Management Group, 'Deals to reopen the Strait of Hormuz remain elusive, with investors teetering in the balance.' The conflict in the Middle East appears to be widening, with Iran-backed Houthis conducting a large-scale attack against forces from Yemen's Saudi-aligned government.

President Donald Trump stated that he believes the war will end 'pretty soon,' but parties involved remain far apart on conditions for an accord. The US insists on free transit through the strait and a return to the pre-war status quo, while Iran is pushing for a fee structure.