US-Iran Tensions Send Oil Prices Soaring for Fourth Day
Oil prices continued their upward trend for a fourth consecutive day on August 18, 2026, as tensions between the US and Iran remained high. The standoff in the Strait of Hormuz showed no signs of easing, with US President Donald Trump stating that talks were neither taking place nor scheduled. However, he also assured that the waterway would remain open.
The Iranian government had previously denied any intention to renew an interim deal signed in June, which lapsed on August 18. Data from the American Petroleum Institute showed a small contraction in US inventories last week, pointing to tighter supplies in the country. This development is concerning given that the US Strategic Petroleum Reserve has shrunk to its lowest level in over 40 years due to the ongoing conflict.
The commercial transit through Hormuz remained at a fraction of pre-war levels, indicating continued disruptions in global oil supplies. West Texas Intermediate crude futures rose by 0.45% to $85.32 a barrel, while Brent futures were yet to begin trading.