Oil Nears $85 as Hormuz Deal Hopes Stall
Oil prices were higher in early Asian trading on August 10, 2026, as uncertainty over a possible agreement to reopen the Strait of Hormuz continued to outweigh hopes for a quick return to normal shipping. Traders and investors are closely watching the developments, as the situation affects the global energy market. The prices of West Texas Intermediate crude and Brent crude rose, with WTI at $78.71 a barrel, up 53 cents, or 0.68%, and Brent crude at $84.28, up 73 cents, or 0.87%, at 8:33 am Tokyo time.
The gains came despite renewed diplomatic efforts to reopen the strategic waterway, reflecting traders’ concern that an emerging Iran-Oman arrangement may not immediately restore unrestricted global shipping. Iran has tied a full reopening to additional concessions from Washington, which has led to a stalemate in the negotiations. The central problem is that Tehran and Washington appear to have different ideas about what “reopening” means, with Iran seeking concessions linked to the conflict and sanctions before unrestricted passage can resume.
The situation in the region remains volatile, with Iran stepping up attacks on ships in the Middle East Gulf, including vessels from South Korea and the UAE. The UAE accused Iran of attacking an empty crude oil tanker belonging to Abu Dhabi state oil firm ADNOC with drones as it attempted to transit the Strait. The UK Maritime Trade Operations reported incidents involving cargo vessels in the region, adding to the tensions.
The ongoing tensions and uncertainty have led to a rise in oil prices, with Brent futures climbing toward $85 per barrel and WTI hovering near $79. The global oil market remains highly volatile, with traders and investors closely watching the developments in the region. The situation is being monitored by the UAE, which has left OPEC, and the US, which has stepped up its naval blockade of Iran.
The UAE’s energy minister stated that the country owes it to its people to ensure the stability of the energy market, as the situation continues to unfold. The US has redirected eight commercial vessels and disabled another ship as its military campaign entered an 11th consecutive night. The ongoing tensions and uncertainty in the region are likely to continue to affect the global energy market, with oil prices remaining volatile.
As the situation in the Strait of Hormuz continues to evolve, it is connected to the prior story of the US-Iran ceasefire that came into force in early April, which had initially led to hopes of a reduction in tensions in the region. However, the recent escalation of attacks and the stalemate in the negotiations have led to a rise in oil prices and increased uncertainty in the global energy market.
