Oil Prices See-Saw Amid Ongoing U.S.-Iran Standoff Over Strait of Hormuz

Oil prices continued their seesaw trade on Wednesday as tensions between the U.S. and Iran over control of the Strait of Hormuz persisted. The global oil benchmark, Brent crude, fell 0.6% to $88.38 a barrel after reaching a session high of $90.06 earlier in the day.

The U.S. and Iran have been at odds over who controls the vital waterway, with both sides making competing claims. The situation has led to increased caution among shippers, with Kpler data showing a modest rise in confirmed vessel crossings through the strait on Tuesday, but averaging only 13 ships per day over a five-day period.

The International Energy Agency (IEA) forecasted a bigger hit to world oil demand due to the continued closure of the critical chokepoint. The agency now expects world oil demand in 2026 to decline by 1.6 million barrels per day, 510,000 barrels per day more than its previous estimate.