Oil prices hit 3-week high on Hormuz shipping risks

August 19, 2026 (MLN): Oil prices rose to their highest level in around three weeks on Wednesday, supported by persistent uncertainty over shipping through the Strait of Hormuz and ongoing disruptions to global supply.

Currently, Brent crude futures is up, 0.89%, at $91.91 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is up by $0.91, or 1.08%, to $84.97 per barrel by [04:10 pm] PST.

Brent crude climbed above $91 a barrel, reaching its highest level since July 30, while U.S. West Texas Intermediate (WTI) touched its strongest level since July 31.

The gains showed a growing risk premium as uncertainty surrounding maritime traffic through the key energy corridor continued to weigh on markets, according to CNBC.

Shipping activity through the Strait of Hormuz has remained significantly below normal, with several shipowners avoiding the route amid uncertainty over the security situation and conditions for commercial traffic.

The waterway previously handled roughly one-fifth of global oil and liquefied natural gas supplies, making any prolonged disruption a major concern for energy markets.

Market sentiment was further affected by conflicting statements over the status of the Strait. U.S. President Donald Trump said Tuesday that no talks were underway with Iran and that the waterway remained open, while Iran maintained that the passage was still closed.

A temporary ceasefire expired Monday, while a senior Iranian official indicated that Tehran was shifting toward a more offensive military posture amid stalled diplomacy. However, no fresh strikes were reported on Tuesday.

Meanwhile, Iraq’s cabinet approved a mechanism allowing crude exports through specialised international and local companies and multiple export routes. The new arrangements are scheduled to operate for three months from September 1.

U.S. crude and distillate inventories also declined last week, according to market sources citing American Petroleum Institute data, while gasoline stocks increased. Official inventory figures from the U.S. Energy Information Administration are due later Wednesday.

Reuters analysts expect U.S. crude inventories to have fallen by around 600,000 barrels in the week ended August 14, adding further support to oil prices.

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