Iran confirmed on August 18 that it will not reopen the Strait of Hormuz until the United States meets a set of conditions. Tehran is demanding the lifting of the US naval blockade on its ports, the unfreezing of frozen assets, the removal of sanctions, war reparations, and an end to US support for attacks on its allies. The Strait of Hormuz, through which roughly one-fifth of the world’s oil and LNG supply flows, saw ship transits drop to historically low levels by August, with sometimes only two vessels observed in a single day. The United States has refused these proposals, making any near-term resolution unlikely. The prolonged closure is driving oil prices upward and particularly affecting Asian economies heavily dependent on Gulf crude imports.
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