OIL NEARS THREE-WEEK HIGH AS IRAN PEACE HOPES FADE

Developing story: Oil prices, shipping volumes, Saudi cargoes, Iranian statements and U.S. military or sanctions decisions may change during the trading day.

Oil prices rose for a third session Tuesday, reaching near three-week highs as prospects faded for a U.S.-Iran peace deal and traders priced the risk of prolonged disruption through the Strait of Hormuz. Reuters reported that Brent crude traded at $91.07 a barrel while U.S. West Texas Intermediate reached $84.99.

The move reflects a shift from temporary disruption toward a more persistent supply-risk premium. The 60-day negotiating window linked to the June U.S.-Iran interim framework has expired without a final agreement, and Iran’s top negotiator said the strait would remain closed until Washington meets Iran’s conditions under the deal.

Hormuz is the key market driver. The strait carried roughly one-fifth of the world’s traded oil and liquefied natural gas before the war. Even partial disruption can affect crude benchmarks, refinery margins, shipping insurance and inflation expectations, especially when commercial vessel traffic is already reduced to single-digit crossings in public tracking data.

The market is also reacting to language from both sides. Reuters reported that a senior Iranian official said Monday that Iran would shift to a more offensive military posture as efforts toward a permanent end to the war stalled. President Donald Trump has called the June deal over and has threatened action over the Iran-Oman talks on managing the strait.

Saudi supply is providing limited relief. Saudi Aramco has resumed some oil loadings from inside Hormuz and is offering cargoes through ship-to-ship transfers off Fujairah. That shows crude is not fully trapped, but the volumes are limited and still depend on tankers willing to enter or exit a dangerous corridor.

Analysts are now looking beyond the immediate trading session. Reuters quoted market analysts warning that lack of a deal could affect oil-price expectations later in the fourth quarter and into 2027. That matters for central banks and governments because persistent oil strength can feed transportation costs, food prices and household inflation expectations.

The Red Sea adds another supply complication. Yemen’s Houthis have claimed attacks on Saudi-linked vessels and oil facilities, and Red Sea shipping has already been disrupted by blockade threats. If the Red Sea and Hormuz are both unstable, producers and buyers have fewer reliable alternatives.

What is confirmed is that Brent and WTI traded near their highest levels since late July as Hormuz remained disrupted and U.S.-Iran talks showed no visible breakthrough. What remains unresolved is whether Saudi loadings can ease the tightness, whether Iran escalates further, and whether oil markets are pricing a contained crisis or the beginning of a longer supply shock.

Fact-check date: August 18, 2026. Article type: News. Sources: Reuters. Developing note: Oil prices, shipping volumes, Saudi cargoes, Iranian statements and U.S. military or sanctions decisions may change during the trading day.