OIL HEADS FOR WEEKLY GAIN AS IRAN SUPPLY RISK BUILDS

Developing story: Crude prices, refined-product prices, sanctions details and Hormuz traffic may change as trading resumes.

Oil headed for another weekly gain as U.S. pressure on Iran, low traffic through the Strait of Hormuz and concern over future supply kept crude markets under strain. Reuters reported that Brent crude held near $94 a barrel, with both major benchmarks on track to advance after touching their highest levels since late July.

The rally is being driven by risk rather than demand strength alone. Washington is preparing a new sanctions package against Iran, tanker movement through Hormuz remains far below prewar levels, and traders are watching whether Tehran retaliates against the U.S. economic campaign by further restricting shipping or targeting energy infrastructure.

Hormuz remains the central pricing point. Before the war, the strait carried roughly one-fifth of traded oil and liquefied natural gas. Kpler data cited by Reuters showed only seven commodity ships through the strait on Thursday. That level of visible traffic is consistent with a market still pricing disruption rather than a route returning to normal.

Iranian crude supply is also tightening. Reuters has reported that offers of Iranian oil to Chinese buyers have fallen as the U.S. blockade bites. Even if some barrels continue moving through less visible channels, reduced offers and higher asking prices show that the squeeze is affecting physical markets.

The risk is not limited to crude benchmarks. Diesel, gasoline and heating-oil markets can become more sensitive as Northern Hemisphere demand rises later in the year. Higher refined-product prices affect trucking, farming, airlines, shipping and household budgets more directly than crude futures alone.

The political consequences are immediate. In the United States, higher gasoline costs arrive ahead of midterm elections. In Europe and Britain, energy prices are already feeding inflation debates. In Asia, refiners must decide whether to accept more expensive cargoes, draw inventories or shift suppliers.

What is confirmed is that oil prices were headed for a weekly gain as Iran-related supply risks remained unresolved. What remains unresolved is whether the next U.S. sanctions package produces concessions, tighter oil flows or retaliation that pushes crude and fuel prices higher.

Fact-check date: August 22, 2026. Article type: News. Sources: Reuters; Kpler. Developing note: Crude prices, refined-product prices, sanctions details and Hormuz traffic may change as trading resumes.