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Oil Prices Spike as Hormuz Closure Cuts 20% Supply

8/12/2026

50 12 Full Breakdown

Center

Oil Prices Rise

On August 11, oil prices rose as the Strait of Hormuz stayed largely closed, restricting roughly 20 % of global oil flow during the U.S.–Iran war.
Only six vessels transited the strait on Monday, far below the ten-day average of about eleven.
Brent futures traded at $87.84 a barrel and U.S. WTI at $82.20 on August 11.
U.S. crude inventories rose 9.1 million barrels week ended August 7, while gasoline and distillate stocks fell.

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Oil Prices Surge

Oil prices rose on August 11 as the Strait of Hormuz stayed closed, limiting about 20% of global oil flow amid the U.S.-Iran war.
The price surge sparked inflation worries and lifted U.S. gasoline to $4.11 per gallon, deepening household cost burdens.
Iran set six reopening conditions, requiring the U.S. blockade end and release of frozen assets.
U.S. forces redirected 55 vessels after July blockade, stopping Iranian oil from Kharg Island.

History

Historical Context

During the 1990-91 Gulf War coalition bombers crippled Iraqi oil fields, cutting roughly 5 million barrels per day and prompting a UN 30 % export ban and Saudi-Kuwaiti price hikes to $30 a barrel. The 2026 Iranian closure of the Strait of Hormuz, which carries about 20 % of world oil, echoes that shock, driving Brent above $87 and reviving fears of rapid price spikes.

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Oil Prices Rise

On August 11, oil prices rose as the Strait of Hormuz stayed largely closed, restricting roughly 20 % of global oil flow during the U.S.–Iran war.
Only six vessels transited the strait on Monday, far below the ten-day average of about eleven.
Brent futures traded at $87.84 a barrel and U.S. WTI at $82.20 on August 11.
U.S. crude inventories rose 9.1 million barrels week ended August 7, while gasoline and distillate stocks fell.

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