Traffic through the Strait of Hormuz has fallen to 6% of normal levels, with Brent crude near $94 a barrel as Iran keeps the chokepoint effectively closed. Tehran says the shutdown, now in its sixth month, stays in place until Washington meets a list of demands.
Roughly 74 ships used to cross the Strait of Hormuz each day; as of August 22, 2026, only four do. Iran's Islamic Revolutionary Guard Corps enforces the closure, requiring vessels to submit to vetting and approval before any transit. The United States disputes Iran's claim of total control, maintaining that limited passages remain possible under American naval oversight.
Tehran lays out its terms
Iran's Supreme National Security Council Secretary Mohsen Rezaei, appointed to the post on August 9, confirmed the closure remains until the United States changes its behavior and meets Tehran's demands. Those demands: end military operations against Iran and its regional allies, lift sanctions along with the naval blockade, and withdraw American forces from the region.
The shutdown began February 28, 2026, following U.S. and Israeli military strikes on Iranian positions. A June 2026 memorandum of understanding between the two countries was meant to ease tensions and restore commercial traffic, but it has produced little tangible movement.
What $94 oil signals
Brent crude has climbed to around $94 a barrel, a level that reflects more than ordinary supply and demand. Traders call the extra cost a war-risk premium — the price built in when shipping routes carry the risk of a seized vessel.
The strait sits between Iran and the Arabian Peninsula, connecting the Persian Gulf to the Gulf of Oman. Saudi Arabia, the UAE, Kuwait, Iraq, and Qatar all rely on it as their primary export corridor. Washington has shown no public indication it intends to meet Iran's conditions, even as the unimplemented June memorandum suggests both sides have at least sat across a table.
Source: Crypto Briefing
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