Skip to content
You can now search across every topic, entity and event.What's new
Iran Conflict 2026
11SEP

Oil prices a Hormuz reopening that has not happened

4 min read
09:25UTC

Brent crude fell to about $77.22 on 18 June, a pre-war level, while not one tanker resumed transit, insurers kept the strait excluded and the mines stayed live. The market is reading the signature; the water disagrees.

ConflictDeveloping
Key takeaway

Brent is pricing a reopening that no insurer, mine crew or transit log has yet confirmed on the water.

Brent Crude, the benchmark that sets the price of roughly two-thirds of internationally traded oil, fell to about $77.22 on 18 June, down 6.9 per cent from $82.98 and back to a level last seen before the war 1. Traders treated the signed Islamabad Memorandum of Understanding (MoU) as a completed reopening of the Strait of Hormuz. Not one tanker resumed transit.

The physical strait tells a different story from the screen. No Protection and Indemnity (P&I) club, the mutual insurers that cover roughly 90 per cent of ocean-going tonnage, has lifted its Hormuz war-risk exclusion; premiums sit at four to twenty times pre-war levels, and transits run near 6 per cent of baseline . Mine-clearance crews are still working uncleared waters: an IRGC vessel issued a radio warning to a US warship during that work on signing day. None of that has reached the insurance market that decides whether a hull moves.

Brent had touched $87.33 only days earlier and slipped below $90 when the ceasefire first looked probable ; the slide now prices an operational resumption rather than a rising probability of one. If the OFAC waiver never lands, or the 60-day toll-free window lapses into a fee, the gap between paper and water closes upward. Brent at $77 runs several weeks ahead of any operational change in the strait itself.

Deep Analysis

In plain English

Financial markets and physical ships operate on different clocks. Traders in London can reprice oil within seconds of reading a news headline. A tanker captain deciding whether to sail through the Strait of Hormuz needs to know the mines have been cleared, that his insurance still covers him, and that an armed vessel will not stop him halfway through. On 18 June, Brent fell 6.9% to $77.22 as traders priced the deal as a completed reopening. Yet BIMCO, the world's largest shipowner association, confirmed no P&I club had lifted its war-risk exclusion. CENTCOM's two carrier groups continued redirecting vessels. Iranian-laid mines remained uncleared. Zero commercial tankers completed a Hormuz transit that day. The price moved; the strait did not.

What could happen next?
  • Risk

    If no commercial tanker completes a Hormuz transit by 25 June, Brent is likely to rebound toward $82 to $84 as traders recognise the physical-to-paper gap.

    Immediate · Assessed
  • Consequence

    Saudi Arabia's four idle supergiant fields , representing 2 to 2.5 million barrels per day of capacity , will not restart until owners confirm Hormuz is operationally clear, because VLCC loading at Safaniya and Ras Tanura exits via the strait.

    Short term · Assessed
  • Opportunity

    The first commercial VLCC completing a Hormuz transit under P&I cover would be the most significant operational market signal since the conflict began, likely accelerating the Brent decline by a further $3 to $5.

    Short term · Reported
First Reported In

Update #131 · Iran deal's first death tests the text

CNBC· 18 Jun 2026
Read original
Different Perspectives
Turkey
Turkey
Golden Global Portfoy Yonetimi closed three funds to new money a day after telling regulators they were legally separate from its sanctioned parent, and the central bank held its rate at 37 per cent citing energy-driven inflation risk. Ankara is absorbing balance-sheet and monetary costs from a war it is not fighting.
Qatar
Qatar
Qatar's foreign ministry said it was coordinating with China during a Beijing visit to restart negotiations, while filing hundreds of letters at the UN documenting Iranian strikes on its own civilian facilities. Doha is mediating for a neighbour it is also formally accusing, a contradiction the referral's clean vote count does not show.
China and Russia
China and Russia
China and Russia voted against the IAEA referral alongside Niger, and Iran's ambassador told the Board that inspections were impossible during a war Iran did not start. Beijing is separately mediating between Doha and Tehran, meaning the same power blocking the West's legal track is running the diplomatic one that might actually end the war.
Jordan
Jordan
Jordan said it intercepted 18 of the 20 Iranian ballistic missiles fired at its territory on 8 September, the war's first sustained salvo against a state that is not a combatant. Amman's 90 per cent interception rate held, but a tenfold jump in missiles fired in a single volley raises what the next one might carry.
United States
United States
CENTCOM said its strikes disabled five Iranian tankers only after two failed missile attempts on a US warship, and Treasury moved the same week to a presumption of denial on all Iran licences. Washington now treats commercial shipping and financial plumbing as one enforcement front rather than two separate tracks.
Iran / IRGC
Iran / IRGC
Iran's foreign ministry called the CENTCOM tanker strikes a war crime and a breach of the UN Charter, while the IRGC named two US destroyers it says it damaged without releasing images. Tehran expects the claims, unverifiable either way, to sustain domestic morale after losing five tankers in a single day.