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Oil heads for second weekly gain as Hormuz reopening hopes fade

8/23/2026

Crude oil prices pulled back Friday but stayed on course for a second consecutive weekly gain.

The Strait of Hormuz, a narrow passage connecting the Persian Gulf to the open ocean through which Gulf crude must travel to reach buyers abroad, sits at the center of that move.

Hopes of a swift reopening of the channel had faded to near-zero by week's end, and the United States pledged to increase economic pressure on Iran. The strait functions as a chokepoint.

When access is disrupted or in serious doubt, traders pay more for oil that can still move, and that premium works its way into weekly prices.

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