Oil Prices Soar as Middle East Conflict and Hormuz Disruptions Mount
Global oil prices have risen once again amid concerns over a prolonged conflict in the Middle East and disruptions to global supply. On Tuesday, August 18, Brent crude prices surpassed $91 per barrel after rising 27 cents or 0.3 percent to $91.14.
US benchmark West Texas Intermediate (WTI) crude also rose, increasing by 42 cents to $85.04, after earlier reaching a high of $85.37. Analysts point to the lack of progress in talks between the US and Iran on a lasting ceasefire as a major contributor to investor concerns over supply.
The conflict has raised fears of a supply crunch, with Iran indicating it would take a more aggressive military stance if talks stall further. Meanwhile, the passage of oil cargo ships through the strategic Strait of Hormuz has dropped significantly, adding to market anxiety.