Oil prices rise as U.S.-Iran tensions over the Strait of Hormuz escalate

Global oil prices saw significant increases on August 11, 2026, as the ongoing closure of the Strait of Hormuz continues to fuel market uncertainty. Brent crude rose to 89.96 dollars per barrel, a 2.55% increase, while U.S. West Texas Intermediate (WTI) climbed 2.91% to 84.52 dollars per barrel. The surge follows reports of conflicting demands between Washington and Tehran, threatening the restoration of global energy flows.

U.S. President Donald Trump has demanded reparations from Iran for lives lost during the recent five-month conflict, while Iran’s newly appointed secretary of the Supreme National Security Council, Mohsen Rezai, stated that the strait will remain closed until the U.S. ends the war and unfreezes Iranian assets held abroad. These incompatible positions have hardened, leading analysts to warn that if the diplomatic impasse persists, oil prices could potentially reach 120-140 dollars per barrel.

While markets had initially anticipated a quick resolution, the appointment of the hardline veteran Rezai and the hardening stance from the White House suggest the closure may be prolonged. Investors remain on high alert as current alternative export routes and supply measures are deemed insufficient to offset a sustained disruption in this critical maritime corridor.