Traffic Through The Strait Of Hormuz Has Practically Ground To a Halt. Oil Is Edging Up.

Oil prices are edging up on Monday after the latest data from intelligence firm Kpler cited by Reuters showed that only five ships made it through the Strait of Hormuz during the weekend.

Brent oil, the international benchmark, gained 0.23% and clocked in at $88.73 per barrel at 8:25 a.m. ET, while West Texas Intermediate, the U.S. benchmark, climbed 0.21% and stood at $81.64 per barrel at the same time.

All ships that passed through the waterway did so on Saturday, while no vessels were recorded on Sunday. The figure compares to the 31 that passed the previous weekend.

CNBC noted that overall shipping plummeted 90% compared to the pre-war period. Before hostilities began, the waterway averaged about 130 passages per day.

The decline comes as the deadline for the U.S. and Iran to reach a nuclear deal as part of their memorandum of understanding has passed. However, a top Tehran official said the mark is "irrelevant" given renewed hostilities.

"The 60-day discussion is no longer relevant," Iranian Foreign Ministry spokesperson Esmail Baqaei said, according to remarks published by state-run news agency IRNA.

Baqaei went on to say the period was set to kick off negotiations over the "nuclear issue" and the "lifting of sanctions," but that has not been the case because the U.S. violated the terms and prevented them from taking place.

The U.S., in turn, has accused Tehran of violating the agreement by targeting ships attempting to cross the Strait of Hormuz. That disagreement led to the most recent flare up, which has ebbed and turned into a scenario where the Trump administration is basing its strategy on applying economic pressure on Iran while sustaining the blockade of its ports. Tehran has also been preventing other ships from crossing the waterway, largely bringing traffic to a halt.

Treasury Secretary Scott Bessent said last week that the U.S. will apply economic measures "that have never been seen on Iran."

Speaking to Newsmax, Bessent said the tactic "will be a combination of economic isolation like ‌the world has ​never seen before, ​and ​the continued blockade in ‌the Strait of ​Hormuz that will ​keep anything from going in or out of ​the ‌Iranian ports." He did not elaborate further, only saying "just watch this space."

The remarks echo those of President Donald Trump, who claimed economic pressure on Tehran is working.

Speaking to Real America's Voice, Trump said the country's economy is in tatters. "They've got 300% inflation. Their currency has almost no value. They're not paying their soldiers. Their soldiers are leaving."

He went on to say that while military options are still on the table, he is leaning towards continuing down the current path: "Economically, they are a mess. They can't borrow money. We control their money, what they had, which is a lot. They had a lot, and we have total control of it. I'm their banker," Trump added.