Why is oil holding a decline despite ongoing ship attacks and geopolitical tensions in key shipping lanes?

Oil is holding a decline because physical buyers and discretionary traders are adopting a 'wait-and-see mode' amid uncertainty over a potential deal to reopen the Strait of Hormuz, leaving little underlying market support and allowing macro and systematic flows to dominate price action — as noted by Rebecca Babin of CIBC Private Wealth Group.

What is the current status of negotiations to reopen the Strait of Hormuz, and how is it affecting oil transit?

Iran and Oman remain short of an accord to reopen the Strait of Hormuz despite earlier optimism that an agreement was close; meanwhile, crude continues exiting the Persian Gulf — often on tankers with transponders switched off — while vessels transiting Hormuz still face ongoing security threats, including recent attacks on two Abu Dhabi National Oil Co. ships.

Oil Holds Drop as Hormuz Deal Elusive While Ship Attacks Persist

Aug 13, 2026

Oil prices held declines as traders monitored efforts to reopen the Strait of Hormuz amid persistent tanker attacks and threats to regional energy infrastructure. Market sentiment remains cautious following reported attacks on major Gulf oil assets including Saudi Aramco facilities.

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