US-Iran Deadlock Sends Crude Oil Prices Soaring to Four-Day High

Crude oil prices have risen for four consecutive days due to ongoing tensions between the US and Iran, as well as recent attacks in the region. The Brent crude price closed above $91 a barrel on Tuesday, August 18, after gaining more than 4.5% over the previous three sessions.

The US and Iran deadlock has persisted, with US President Donald Trump stating that there are no ongoing talks or scheduled talks with Iran. However, he did declare that the Strait of Hormuz is open, operational, and demined. Earlier, he posted a picture of a map of the region on Truth Social, claiming it to be the new US territory.

The UAE has suspended all trade and financial transactions with Iran until further notice, citing regional escalations by Iran as the reason behind the suspension of ties. Iran has denied firing any missiles at the UAE, with foreign ministry spokesperson Esmail Baghaei calling the accusations baseless.

Inventories in the US have continued to remain lower, with stockpiles falling according to American Petroleum Institute data. The official data will be announced today. The margin for making diesel from crude in the US has also soared past $100 a barrel, setting new record highs.