Oil prices surged again after hopes for a U.S.-Iran agreement to reopen the Strait of Hormuz diminished, while global stock markets fluctuated. Investors are closely watching U.S. inflation figures to gauge interest rate trends.
On 12 August 2026 GMT+7, crude oil prices rose sharply, initially climbing more than 2% after increasingly tough statements from the U.S. and Iran about the possibility of reopening the Strait of Hormuz. Prices then eased from their peak but climbed again as investor expectations shifted with the negotiation developments.
At the same time, The Wall Street Journal reported that the U.S. military fired upon a Panama-flagged vessel to prevent it from violating the blockade of Iranian ports, heightening concerns over regional tensions and the impact on oil transportation.
Market analysts from FOREX.com noted that oil prices have risen over recent days as hopes for a full reopening of the Strait of Hormuz under a U.S.-Iran deal have declined. Meanwhile, both countries have sent conflicting signals regarding the negotiation approach.
Meanwhile, U.S. stock markets closed lower at the end of trading, with all three major indexes down. The S&P 500 fell 0.3%. Additionally, investors remain focused on the upcoming U.S. Consumer Price Index report for July, due Wednesday, which could influence decisions on monetary policy and the Federal Reserve's interest rate direction.
Source: AFP