Oil Prices Surge Amid Escalating Middle East Tensions

Oil prices rose on August 12 as concerns over supply disruptions intensified due to a stalled US-Iran peace deal and recent maritime attacks in the Middle East. The Brent futures price increased by $0.72, or 0.81%, to $89.63 per barrel, while West Texas Intermediate (WTI) crude climbed $0.71, or 0.85%, to $83.91 per barrel.

The United States and Yemen's Iran-aligned Houthis reported separate attacks on shipping in the Strait of Hormuz and the Bab el-Mandeb Strait. The Strait of Hormuz saw only six ships transit it on August 10, down from a 10-day average of 11 vessels per day.

Iran's Supreme National Security Council Secretary Mohsen Rezaei stated that the critical Strait of Hormuz shipping route will remain closed until the United States meets Tehran's conditions to end the conflict. These demands include the release of frozen Iranian assets and an end to broader regional hostilities.