Oil Prices Near $90 Amid Hormuz Tensions

Aug 11, 2026

69 min

Aug 11, 2026 23:30

Oil nears $90 as Hormuz hopes fade: Why the shock may last months

## Rising Oil Prices

Oil prices are approaching $90 per barrel as tensions in the Strait of Hormuz continue to impact global supply chains. Despite hopes for a diplomatic resolution between the US and Iran, the situation remains uncertain, affecting the world's most crucial energy passage.

## Diplomatic Efforts

Iran's Foreign Minister recently met with Pakistan's Interior Minister to discuss potential solutions, but no concrete details have emerged. Iran insists on changes in US policy, while the US is wary of any agreement that might leave Iran in control of the strait.

## Supply Chain Challenges

The disruption in Hormuz has led to increased costs for shipping companies, including higher fuel and insurance expenses. This has resulted in a "lagged supply shock," where the economic impact persists even after the geopolitical tensions ease.

## Economic Implications

The Strait of Hormuz is vital for global oil and LNG trade, and its disruption has broader implications for energy markets and inflation. The UBS Supply Chain Stress Index highlights ongoing challenges, indicating that while the rate of supply chain deterioration has slowed, normalcy is still distant.

## Market Outlook

While there is optimism about a potential agreement, the physical realities of supply chain recovery mean that even if Hormuz reopens, the economic effects could linger. Energy markets might stabilize faster than freight and manufacturing sectors, which face longer recovery times.

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