Oil Prices Firm as US-Iran War Disrupts Crude Supplies

Global oil prices held steady on Friday (August 26) as they remained firmly on track for a second consecutive weekly gain due to the ongoing military conflict between the United States and Iran.

The stalemated US-Iran war has effectively frozen energy exports from major regional producers, including Saudi Arabia, Iraq, the UAE, and Kuwait. Market anxieties intensified after a temporary peace pact expired without any signs of diplomatic negotiation, raising fears of a protracted lockdown on Middle Eastern oil fields.

Only seven commodity vessels managed to transit the vital Strait of Hormuz on Thursday, representing a drastic decline from pre-war traffic levels and leaving global supply chains deeply fractured. The United Arab Emirates announced the suspension of all economic and financial dealings with Iran following diplomatic pressure from US President Donald Trump.