Aug. 17 at 8:09 PM
Brent crude futures surged 2.4% to
$90.65 a barrel after the 60-day U.S.-Iran ceasefire expired without a formal agreement, reigniting fears of a major supply disruption. Tensions escalated after President Trump threatened military action against Oman over efforts to block U.S. naval operations in the Strait of Hormuz and urged Iran to “raise the white flag of surrender,” signaling that a diplomatic resolution remains distant.
Oil’s rally was reinforced by the near-collapse of traffic through the Strait of Hormuz, with only five cargo vessels crossing Saturday and none Sunday, versus 31 the previous weekend, following attacks on Abu Dhabi National Oil Co.-operated tankers and a Saudi Aramco refinery. Treasury Secretary Scott Bessent also said Washington plans unprecedented new sanctions on Iran next week, while Gulf producers are reportedly moving oil through the strait at roughly half prewar levels.
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