Oil Near 3‑Week High Amid US‑Iran Tensions

Oil Prices Near 3‑Week High Amid US‑Iran Tensions

Oil prices rose to a near three‑week high in Asian trade on Tuesday, 18 August 2026, as the United States and Iran remained at odds over the Strait of Hormuz and made little progress toward a peace deal. Brent crude futures increased 0.7 % to $91.50 per barrel, while West Texas Intermediate (WTI) futures rose 0.85 % to $85.22 per barrel as of 00:28 ET (04:28 GMT), marking the highest levels for both contracts since 30 July 2026.

President Donald Trump asserted that Washington controls the Hormuz strait and warned that the United States would not seek an extension of the Iran cease‑fire signed in mid‑June, which expired on Monday. He also threatened to “bomb the s*** out of” Oman if it “gets in the way,” although the specific grounds for such action were not clarified.

The UK Maritime Trade Operations authority reported that a vessel transiting outbound through Hormuz was struck by an unknown projectile, prompting further price gains. Iranian media later reported that Tehran had detained a tanker linked to the United Arab Emirates for allegedly violating Iranian rules in Hormuz; Iran denied the U.S. claims of control.

Iran and Oman have indicated they are discussing the reopening of shipping routes through Hormuz, but no definitive agreement has been announced. Shipping data show that commercial traffic through the strait remains at only a fraction of pre‑war levels, reflecting continued fear of Iranian attacks.

Prior to the conflict, the Strait of Hormuz accounted for roughly 20 % of global oil supplies; its closure would therefore significantly curtail crude supplies, a factor contributing to the price rally.