Hormuz Crisis Deepens as Shipping Slows and Oil Prices Rise

Oil prices rose on Monday as hopes faded for an immediate diplomatic breakthrough between the United States and Iran and shipping through the Strait of Hormuz remained severely disrupted.

The strategic waterway normally handles a substantial proportion of internationally traded oil and liquefied natural gas.

Vessel-tracking data has shown an extraordinary decline in commercial traffic following attacks on tankers and continuing tensions surrounding Iranian control of the Strait.

Only five commodity vessels were recorded crossing on Saturday, with none recorded on Sunday, compared with 31 during the previous weekend. Before the crisis, more than 130 vessels crossed daily.

Some vessels may be operating without publicly visible tracking signals, meaning the figures cannot account for every ship. Nevertheless, the reduction represents a severe disruption to one of the world's most important energy corridors.

Oil markets are responding accordingly. Brent crude remains around the high-$80-per-barrel range as traders assess the possibility of prolonged disruption.

Why it matters: A sustained interruption in Hormuz could affect fuel prices, inflation, manufacturing costs and transportation worldwide. Countries heavily dependent on imported energy are particularly exposed.

Source: Reuters, 17 August 2026.