US, Iran Fail to Reopen Strait of Hormuz as Brent Stays 50% Above War Start
Updated
Updated · Fortune · May 16
US, Iran Fail to Reopen Strait of Hormuz as Brent Stays 50% Above War Start
4 articles · Updated · Fortune · May 16
Trump’s talks with Xi Jinping produced agreement that the Strait of Hormuz should reopen, but no path to get there as Iran said normal transit will resume only after the war ends.
Iran has shown little sign of loosening its grip, saying it wants to keep monitoring and control mechanisms in the strait even after hostilities stop, preserving leverage over a waterway that has pushed Gulf exports near a standstill.
Brent crude has jumped about 50% since the war began, and a modest recovery in vessel traffic earlier this week has already faded as shipowners remain cautious.
Washington is trying to force concessions by blockading Iranian oil exports while weighing whether to ease sanctions on Chinese buyers; Trump said he will decide in the next few days after discussing the issue with Xi.
One possible opening is to defer the dispute over Iran’s highly enriched uranium stockpile, but that issue—missing since US-Israeli strikes last June—remains a major obstacle to any broader peace deal.
With the world on edge, what secret deal between the US and China could finally reopen the Strait of Hormuz?
The war began over Iran's nuclear bomb material. Why is its location now being ignored in peace talks?
The Hormuz closure is crippling oil markets, but is a far worse global food crisis the real impending disaster?
2026 Strait of Hormuz Disruption: Inflation, Oil Supply Shock, and the Race for Energy Resilience
Overview
As of May 2026, the Strait of Hormuz crisis is causing significant disruptions to global trade and finance, putting major pressure on international markets and relations. The crisis has led to immediate and far-reaching consequences, especially for energy prices and shipping, resulting in a global economic fallout. Inflation is rising due to elevated oil prices, making it unlikely for central banks like the Federal Reserve to ease monetary policy. This supply shock at a critical energy chokepoint is increasing risks to global economic growth, highlighting the interconnectedness of energy security, inflation, and financial stability worldwide.