Iran’s grip on Strait of Hormuz weakens as oil stays above $85

More than 80% of liquid transits through the Strait of Hormuz used the Omani route during the past fortnight as U.S. Navy patrols helped ships avoid Iran’s preferred northern route, analysts said. Iran attacked several vessels attempting to use the route, but most ships continued crossing under U.S. protection. Homayoun Falakshahi of Kpler said Iran appeared to have at least partially lost control of the strait, while Dan Pickering of Pickering Energy Partners said Iran may be seeking deterrence rather than full control. Energy Secretary Chris Wright said the seven-day average of oil flows through the strait had risen to nearly 9 million barrels per day, with upgraded regional pipelines and export facilities moving another 5–7 million barrels per day. Brent crude rose 0.99% to $91.92 a barrel and WTI gained 1.08% to $84.97 at the time of writing; in earlier trading, WTI reached $85.66 and Brent $91.71. The U.S. national average gasoline price reached $4.0860 a gallon, while the 30-year Treasury yield reached its highest level in almost two decades. A 60-day U.S.-Iran memorandum of understanding expired without a broader peace agreement, and Oman and Iran were negotiating to restore freedom of navigation without U.S. involvement. President Donald Trump said the U.S. had total control of the strait and threatened Oman if it obstructed U.S. talks, while a poll found 57% of Americans considered the decision to go to war wrong and 25% considered it right.

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