Why did oil prices drop after a five-day gain, and what is the current status of the Strait of Hormuz reopening?

Oil prices dropped after a five-day gain because traders paused to await signs of progress toward reopening the Strait of Hormuz, a critical global oil transit route; however, the news states there was 'little sign of progress on reopening the waterway,' with President Donald Trump asserting the US has 'total control' over it.

What does the International Energy Agency project for the global oil supply deficit this quarter and for 2026, and what is cited as the main cause?

The International Energy Agency projects a global oil shortfall of 1.8 million barrels a day this quarter — more than double an earlier projection — and warns that the deficit for 2026 as a whole will likely be the widest in five years; the IEA attributes this worsening imbalance to the ongoing US-Iran war.

Oil Drops After Five-Day Gain With Focus on Hormuz and Deficits

Aug 12, 2026

Oil prices fell following a five-day gain as traders await progress on the Strait of Hormuz amidst a projected 1.8 million barrel daily deficit. The IEA forecasts the 2026 shortfall will likely be the widest in five years due to regional conflicts.

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