Iran-US Conflict Continues to Weigh on Oil Prices Amid Hormuz Tensions
Oil prices remain under pressure as tensions between the United States and Iran continue to escalate over control of the Strait of Hormuz. The waterway is a critical route for global crude oil and liquefied natural gas trade, with around $1 trillion in commerce passing through it annually.
The conflict has been ongoing since February 28, 2026, when a framework agreement between the two parties expired. US President Donald Trump declared that the naval blockade on Iranian ports remains fully in force, while Iranian negotiator Mohammad Baqer Qalibaf stated that the strait's reopening would only occur once Washington meets several conditions, including lifting oil sanctions and unfreezing Iranian assets.
The United Arab Emirates has suspended all commercial and financial exchanges with Iran, marking a significant shift in the regional economic balance. The conflict is also affecting US inventories, with distillate stocks declining over several consecutive weeks, while crude oil stocks posted a weekly increase above market analysts' expectations.