Strait of Hormuz remains closed as Iran demands asset release amid regional conflict

The Strait of Hormuz remains closed to commercial traffic on Wednesday, 12 August, as Tehran continues to block the vital waterway amid an ongoing military conflict with the United States and Israel. The closure, which Iran maintains will persist until Washington releases frozen assets and implements regional de-escalation, has triggered fresh attacks on commercial vessels and a significant revision of global energy forecasts. Global energy demand slumps The International Energy Agency (IEA) on Wednesday sharply reduced its 2026 global oil demand forecast by 1.6 million barrels per day (mb/d), citing the prolonged closure of the strait and sustained high prices. Approximately one-fifth of the world’s oil supply typically transits through the passage. Crude prices have remained elevated since the conflict began in late February, following strikes on Iranian infrastructure that severely damaged regional shipping stability. Security threats and diplomatic efforts Tensions expanded to the Red Sea on Wednesday as Pakistan’s Foreign Minister, Ishaq Dar, confirmed that three Pakistani nationals were killed in a Houthi rebel strike on a vessel. In response to the widening instability, Pakistan’s interior minister arrived in Iran today to discuss regional security and mediate between the warring parties. Meanwhile, the Institute for the Study of War (ISW) reported that Iraq is preparing a potential crackdown on Iran-backed militias to reassert state sovereignty as regional spillover…