Oil Prices Hold Near Three-Week High Amid Strait of Hormuz Uncertainty

Oil prices held near a three-week high on August 19 as concerns over shipping through the Strait of Hormuz persisted. Brent crude futures traded at $91.20, up 18 cents or 0.2%, while U.S. West Texas Intermediate crude futures reached $85.10 a barrel, an increase of 16 cents or 0.19%. The recent price rally was driven by escalating supply concerns.

The Strait of Hormuz has been a central concern for energy markets since the start of the US-Israeli war on Iran in February, with about one-fifth of global oil and liquefied natural gas supplies passing through it. Commercial shipping through Hormuz continues to face disruptions due to ongoing uncertainty over maritime traffic conditions.

A temporary ceasefire agreement expired on August 18, and a senior Iranian official stated that his country was moving to a 'fully offensive' military posture due to the diplomatic stalemate.