US-Iran tensions deepen as oil prices climb above $90

This live blog follows the latest developments across the Middle East crisis, including regional diplomacy, maritime security, ceasefire negotiations, and economic fallout.

Catch up on Wednesday's top developments here:
 

• US helicopter fired on ship that tried to break Iran ports blockade
•  Oil flows through Hormuz reach 9 million barrels per day
• Brent North Sea oil tops $90 as Iran-US deal hopes fade

• US says new round of Israel-Lebanon talks in September in Rome

• Qatar condemns Colombia’s recognition of Golan Heights as Israeli territory

Tuesday’s developments at a glance

Published: Aug 12, 2026 | 00:28 GMT | by Web Desk

The United States and Iran remained locked in a standoff over the Strait of Hormuz as a US Navy helicopter fired missiles at and disabled a Panama-flagged cargo ship attempting to reach Iran, while Washington said it had redirected 55 vessels since reinstating its ports blockade.

Oil prices climbed above $90 a barrel amid fading hopes of a US-Iran deal to reopen the key waterway, although the US energy secretary said nearly 9 million barrels per day were flowing through the Strait of Hormuz, with additional supplies moving through alternative routes.

At the United Nations, Pakistan warned the Security Council that Israel’s settlement expansion, settler violence and measures affecting Palestinian land were rapidly undermining prospects for a two-state solution. The emergency meeting also drew warnings from several countries over the deteriorating situation in the occupied West Bank.

Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar held talks with his Indonesian counterpart on regional developments, including the evolving US-Iran situation, with Indonesia appreciating Pakistan’s role in promoting dialogue and peace.

Meanwhile, the US announced that a new round of Israel-Lebanon talks would be held in Rome in early September, as Israeli strikes continued in southern Lebanon. A cargo ship was also reported to have been hit by an unknown projectile in the southern Red Sea, causing casualties.

Elsewhere, Colombia’s recognition of Israeli sovereignty over the occupied Syrian Golan Heights drew condemnation from Qatar, Saudi Arabia and Syria, while Iran announced changes in its senior military command.

In Gaza, the Palestinian death toll from Israel’s ongoing aggression since October 2023 rose to 73,387, according to WAFA, while tensions continued to escalate in the occupied West Bank, including settlement expansion, land seizures and destruction of civilian infrastructure.

Oil prices higher, stocks mixed ahead of inflation report

Published: Aug 12, 2026 | 00:16 GMT | by AFP

Oil prices bounced around before finishing higher Tuesday while global stocks were mixed as markets awaited a key inflation report expected to influence upcoming monetary policy decisions.

Crude prices initially rose more than 2% on hardening rhetoric between the United States and Iran on the prospects for reopening the Strait of Hormuz, which is vital to the world's flow of petroleum shipments.

Oil contracts later gave up those gains, before resuming their climb, as investors' expectations of an agreement ebbed and flowed.

The Wall Street Journal also reported that the US military fired on a Panama-flagged ship to stop it as it tried to get past the US blockade of Iranian ports.

"Crude oil has surged over the past few days as hopes of a US-Iran agreement that would fully reopen the Strait of Hormuz have faded," said Fawad Razaqzada, market analyst at FOREX.com.

But "we have also heard contradictory messages from Washington and Tehran," he said.

Wall Street stocks weakened as the session progressed. All three major indices ended lower, with the broad-based S&P 500 down 0.3%.

For earlier developments, read our Aug 11 live blog here.