Oil Prices Pull Back After Five Straight Gains as Markets Focus on the Strait of Hormuz and Supply Shortfall

  On August 13, oil prices slightly declined after rising for five consecutive trading days, as traders awaited signs of progress on the reopening of the Strait of Hormuz. WTI crude oil fell below $82 per barrel, following an 11% cumulative increase over the past five trading days; Brent crude briefly dropped below $87 per barrel. Regarding the Middle East situation, there were almost no signs of progress on reopening the Strait of Hormuz. U.S. President Trump stated that the United States has "full control" over this waterway. The International Energy Agency (IEA) indicated that as the U.S.-Iran conflict continues, the global oil market faces a supply shortfall of 1.8 million barrels per day this quarter, more than twice previous estimates; by 2026, the oil supply deficit could reach its largest level in five years. According to the American Automobile Association, gasoline and diesel prices in the U.S. have never been this high for this time of year.