Oil Prices Surge on Strait of Hormuz Uncertainty

Crude oil prices rose on August 10 as uncertainty over the reopening of the Strait of Hormuz persisted. Iran stated that a deal with Oman defining new shipping lanes was in its final stages, but emphasized that the US must still meet other conditions.

Brent crude futures increased by 91 cents, or 1.09%, to $84.46 a barrel, while WTI crude futures gained 61 cents, or 0.78%, to $78.79 a barrel.

The Strait of Hormuz is a critical waterway that carries around a fifth of global oil supplies. The recent decline in oil prices was largely due to hopes of a deal between Iran and Oman to reopen the strait, which led to a more than 7% drop last week.