Oil Stays Firm as Hormuz Reopening Talks Stall; IEA Sees Deeper Supply Shortfall

Oil prices remained firm as markets waited for progress in negotiations to reopen the Strait of Hormuz.

Bloomberg reported on August 12 that West Texas Intermediate traded below $83 a barrel. WTI slipped slightly after climbing about 11% over the previous five sessions, while Brent settled near $88 a barrel a day earlier.

President Donald Trump said the US had “complete control” over the waterway. Still, talks on reopening the strait have shown no meaningful progress.

In a report published that day, the International Energy Agency said a prolonged US-Iran conflict would leave the global oil market facing a supply shortfall of 1.8 million barrels a day in the third quarter of this year. That is more than double its previous forecast.

The IEA also projected that the annual supply deficit in 2026 would be the largest in the past five years.

Markets are also weighing the combined impact of war in the Middle East and the Russia-Ukraine war, which is constraining supplies of crude oil and petroleum products and adding to inflation pressure.

Separately, AAA said US gasoline and diesel prices have reached record highs for this time of year. Strong summer travel demand and elevated crude prices are increasing the burden on consumers.