Oil nears $90 as Hormuz reopening hopes fade amid diplomatic deadlock

Brent crude prices climbed toward $90 a barrel on Wednesday, 12 August, as diplomatic efforts to reopen the Strait of Hormuz stalled, signaling prolonged disruption to global energy supplies and maritime trade routes. While Brent briefly touched the $90 threshold on Tuesday, it traded at $88.91 at 7:51 AM on Wednesday as investors recalibrated expectations for a swift resolution between the United States and Iran. Diplomatic deadlock persists Hopes for a quick maritime breakthrough faded after Tehran indicated that a potential agreement with Oman would not automatically lead to the reopening of the waterway. On Tuesday, 11 August, Iranian Foreign Minister Abbas Araghchi met with Pakistan’s Interior Minister Mohsin Naqvi in Tehran to discuss mediation efforts, though no specific breakthroughs were reported. Washington continues to resist any arrangement that grants Iran effective control over the chokepoint, which handles approximately 20% of global oil consumption and a significant share of liquefied natural gas (LNG) trade. Supply chain stress remains high Data from a recent UBS report suggests that even a diplomatic resolution will not provide immediate relief to global…