Tensions Fuel Oil Price Surge Amid Strait of Hormuz Closure

Oil prices continued their upward trend for the third consecutive day on August 11. Brent crude futures rose 0.81% to $89.63 per barrel, while US WTI crude increased by 0.85% to $83.91 per barrel.

The recent price surge follows a 5% rise on August 10, driven in part by dwindling hopes for a peace deal between the US and Iran. The Strait of Hormuz, a critical shipping route, has seen its traffic significantly reduced due to ongoing tensions.

Iranian official Mohsen Rezaei stated that the Strait will remain closed until the US unfreezes Iranian assets and meets Tehran's demands. This stance was reinforced by recent attacks on ships near the Strait of Hormuz and Bab el-Mandeb Strait, carried out by the Iran-backed Houthis and the US military.