Oil Prices Today: Brent Jumps to $91.30, WTI Hits $85.31 as U.S.-Iran Peace Hopes Fade and Hormuz Risks Rise

Oil prices moved higher on August 18, 2026, with Brent crude trading above $91 a barrel and WTI near $85 as hopes for a U.S.-Iran peace deal weakened. The Strait of Hormuz remains a major concern for traders, as limited tanker traffic could tighten global energy supplies. Iran has taken a harder stance, while the U.S. has refused to extend the ceasefire. Markets are now watching closely for the next move in crude prices.

Oil Prices Today: Brent and WTI Extend Their Rally

Brent Crude Climbs Above $90

Oil prices rose for a third straight session on August 18, 2026, as traders responded to fresh supply concerns. Brent crude climbed to around $90.94 a barrel, its highest level since late July. WTI also moved higher, reaching about $85.03. Both benchmarks have gained as hopes for a U.S.-Iran peace deal have weakened.

Brent is now close to the $91 level. Holding above $90 could suggest that traders expect supply disruptions to last longer.

WTI Crude Moves Above $85

WTI has also recovered sharply from its recent lows. The U.S. benchmark reached about $85.03 on Tuesday. The move came despite a large increase in U.S. crude inventories last week.

The latest price action shows how much geopolitical risk is affecting the oil market. Traders are paying more attention to shipping and supply concerns than to the recent bearish inventory data.

Why are the U.S.-Iran Peace Hopes Fading?

60-Day Negotiation Window Ends Without a Deal

Pressure on oil prices increased after the 60-day U.S.-Iran negotiation deadline expired on August 17, 2026, without a permanent agreement. The June arrangement was intended to end the conflict and help restore normal shipping through the Strait of Hormuz.

The agreement has since largely broken down. The United States has ruled out extending the ceasefire framework, while Iran has taken a tougher position. That has raised concerns that supply disruptions could continue for longer than traders had expected.

Iran Takes a Harder Position

Iran has said the Strait of Hormuz will remain closed unless Washington meets its conditions. Talks involving Oman are also taking place as efforts continue to find a way to manage shipping through the waterway. These mixed signals have left oil traders highly sensitive to each new diplomatic and military development.

Strait of Hormuz Risk Puts Global Oil Supply in Focus

Shipping Disruptions Raise Supply Fears

The Strait of Hormuz remains the biggest supply concern for oil traders. Reuters reported that flows through the waterway have dropped from about 18 million barrels per day to roughly 2 million barrels per day during the crisis.

🇮🇷 Shipping through Hormuz is getting insanely expensive.

Earnings for a supertanker hauling Gulf crude to Asia are nearing a 2-month high, as exporters scramble for vessels to move oil through the strait despite the security mess.

The Middle East-to-China route jumped to…

— Mario Nawfal (@MarioNawfal) August 18, 2026

The risks increased again on August 18. A vessel leaving the strait was hit by a projectile, damaging its engine room and causing a crew casualty, according to the UK Maritime Trade Operations centre.

What Happens if Hormuz Traffic Falls Further?

A further drop in shipping could tighten global crude supplies and put more upward pressure on prices. Some shipments are still moving. Saudi Aramco cargoes, for example, have used ship-to-ship transfers to keep exports moving.

Even so, total flows remain well below normal levels. That leaves the market exposed to further disruption if tensions around the waterway increase.

Oil Price Forecast: Can Brent Stay Above $90?

Near-Term Outlook Remains Geopolitically Driven

Brent could stay above $90 if tensions continue and tanker traffic remains restricted. A wider military escalation could push the risk premium even higher. A credible peace agreement, on the other hand, could lead to a quick decline as traders remove some of that premium.

The latest EIA forecast also shows how uncertain the outlook has become. On August 11, the agency raised its 2026 Brent forecast to $86.81, while its WTI forecast increased to $80.88. It expects around 600,000 barrels per day of Middle East production to remain offline through 2027.

What Do Higher Oil Prices Mean for Inflation and Markets?

Higher crude prices can raise fuel, transport and production costs. That can keep inflation pressure elevated even as central banks consider lower interest rates.

U.S. gasoline prices are already higher. Energy Secretary Chris Wright said the average U.S. gasoline price had reached $4.06 per gallon on August 17.

For traders, an AI stock analysis tool can help track energy-related equities, but developments around Iran and the Strait of Hormuz remain the main factors driving crude prices.

Conclusion

Oil prices remain sensitive to developments involving Iran and the Strait of Hormuz. Brent is trading near $91, while WTI is around $85. The next move will depend on shipping activity, military tensions and diplomatic efforts. If disruptions through Hormuz continue, crude prices could remain elevated. A successful U.S.-Iran agreement could ease the supply premium and put pressure on prices.

Disclaimer:

The content shared by Meyka AI PTY LTD is for research and informational purposes only. Meyka is not a financial advisory service, and the information provided should not be treated as investment or trading advice.