Brent Crude Surges Above $90 as Iran Tensions Escalate
Crude oil prices have surged to their highest levels in months as tensions between the US and Iran escalate. Brent crude has broken above $90 a barrel, while West Texas Intermediate (WTI) approached $85.
The price increase comes after a deterioration in US-Iran diplomacy, with Iran saying it will adopt a more aggressive military posture. The temporary ceasefire is set to expire, and progress toward restoring normal tanker traffic through the Strait of Hormuz has slowed.
The International Energy Agency (IEA) expects the global market to run a 1.8 million-bpd deficit in the third quarter, citing prolonged Middle East production losses. Brent crude oil futures were up 0.3% at $91.14 a barrel on August 18, while WTI gained 42 cents to $85.04.
The Energy Information Administration has raised its 2026 average price forecasts for both Brent and WTI, citing prolonged Middle East production losses. However, commercial crude stocks in the US surged by 17.4 million barrels to 424.4 million barrels in the week ended August 7, which could temper further price gains.