Strait of Hormuz Oil Prices Today: Crude Holds Above $87 as US-Iran Deal Hopes Fade

Global Oil Market – (Special Correspondent/Web Desk) -Strait of Hormuz oil prices today are holding steady near their highest levels in more than a week, as traders grow doubtful that Washington and Tehran can strike a deal to end their conflict and reopen the vital shipping route. The pause comes right after President Donald Trump asked Iran to pay for damages linked to the standoff.

Brent crude was barely moved early Tuesday, sitting around $87.81 a barrel. US West Texas Intermediate crude stayed close behind at $82.20 a barrel. Both benchmarks had jumped over 5% just a day earlier, marking their strongest levels since the end of July.

That rally followed a sharp exchange between the two nations. Iran laid out its conditions for peace, and Trump countered by demanding compensation for lives lost in past wars, attacks, and unrest. Analysts say this back-and-forth could make it much harder to reach any agreement over reopening Hormuz.

Trump later claimed the US now controls the strait and has already cleared it of Iranian mines.

Market experts note a widening gap between what each side wants from a deal. Much of last week’s hopeful mood is fading fast, pushing oil prices upward again.

Adding to supply worries, Saudi Aramco has pushed back the restart of its Jazan refinery, which processes 400,000 barrels per day. The new target date is August 30, following two reported Houthi attacks on the facility over the weekend.

Industry voices warn that risks around both Hormuz and the Bab el-Mandeb strait remain serious. Even short-term disruptions can raise shipping insurance costs and force vessels onto longer routes, keeping global energy supply tight for now.

Fresh data adds weight to these concerns. Crude and refined product exports through Hormuz averaged 3 million barrels per day in the week ending August 7. That’s a steep drop from 4.4 million barrels per day just one week before.

In other market news, Iraq has raised its September price for Basra Medium crude sold to Asia. The new official selling price rose by $2.50, now set at $4 below the average Oman/Dubai benchmark.

With tensions unresolved and shipping routes under pressure, traders are watching closely to see whether diplomacy can calm the market or whether prices climb even further in the days ahead.