WTI Crude Oil Prices Rise on Middle East Tensions

The price of West Texas Intermediate (WTI) crude oil rose on Monday, August 17, as tensions in the Middle East offset a surge in U.S. crude inventories.

OPEC lowered its estimate of global oil demand growth in 2026 to around 0.6 million bpd, but the IEA is more cautious and expects global demand to fall by 1.6 million bpd due to high fuel prices and the consequences of the closure of the Strait of Hormuz.

The Strait of Hormuz, a critical oil shipping route, saw only five commercial vessels pass through over the past weekend, compared with 31 a week earlier, while transit virtually stopped on Sunday. The reduction in oil exports from the Persian Gulf due to geopolitical tensions is keeping volatility elevated for WTI.