Oil surges above $91 as Iran-US tensions raise supply fears

August 18, 2026 (MLN): Oil prices climbed on Tuesday as hopes for a lasting end to the Iran-US conflict weakened, raising fresh concerns over crude supplies through key shipping routes.

Currently, Brent crude futures is up, 3.58%, at $91.44 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is up by $2.63, or 3.22%, to $84.36 per barrel by [09:53 am] PST.

Iran is preparing to adopt a more offensive military posture after negotiations with Washington stalled, according to a senior Iranian official.

The United States has also ruled out extending the temporary ceasefire, further dimming prospects for a diplomatic breakthrough.

Progress toward a permanent settlement and the restoration of normal tanker traffic through the Strait of Hormuz has slowed significantly.

The strategic waterway remains a major supply route, with shipping activity falling sharply following recent attacks.

Kpler data showed only five commodity vessels crossed the Strait of Hormuz on Saturday, while none were recorded on Sunday, compared with 31 vessels during the previous weekend.

Meanwhile, Yemen’s Houthi group said it launched missile attacks against what it described as a Saudi military vessel and four escort ships in the Red Sea.

The continued disruption around both the Strait of Hormuz and the Bab el-Mandeb has intensified concerns over global energy supplies, with traders closely monitoring the potential impact on crude flows.

Iran is separately holding talks with Oman on arrangements for managing traffic through the Strait of Hormuz and has indicated that an agreement could be near.

However, US President Donald Trump has threatened military action against Oman over the negotiations.

Despite the heightened tensions, reports indicated that Trump had initiated back-channel contacts with Iran’s Islamic Revolutionary Guard Corps, offering a potential opening for renewed diplomacy.

US crude inventories were also expected to have declined last week, along with refined-product stockpiles, according to a preliminary Reuters poll, adding another supportive factor for oil prices.

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