Opinion: Oil Market Starts Pricing in a Prolonged Hormuz Crisis

By Ron Bousso LONDON, Aug 18 (Reuters) – The oil market is increasingly behaving as though disruptions to Middle East energy supplies are not a temporary shock but a new reality.

Nearly six months after war erupted between the U.S. and Iran, hopes for a diplomatic breakthrough have faded. An interim ceasefire agreed on June 17 has effectively collapsed, the 60-day negotiating period has expired, and neither Washington nor Tehran appears willing to compromise over the future of the Strait of Hormuz.

Instead, both sides are digging in.

Iran warned on Monday it would escalate tensions unless Washington fully implemented