Oil prices rise to three-week high as Strait of Hormuz threat lingers
Brent crude settled at US$91.02 a barrel, its highest since July 24, after Iran threatened to keep the Strait of Hormuz closed and the United States ruled out extending a ceasefire.
Source: The Business Times Singapore · August 18, 2026 at 10:31 PM · AI-assisted report
Corroborated
SINGAPORE, 19 AUGUST 2026 —
Brent crude settled at US$91.02 a barrel, its highest since July 24, after Iran threatened to keep the Strait of Hormuz closed and the United States ruled out extending a ceasefire.
Market Impact
US West Texas Intermediate crude closed at US$84.94, a gain of 0.52 per cent on the day. Both contracts rose less than 1 per cent, tempered by fatigue after months of headline-driven swings since June. Iran’s top negotiator, Mohammad Baqer Qalibaf, told state media on Aug 18 that the strait would remain shut until Washington met the terms of the June interim deal.
President Trump said talks were not taking place or scheduled, though he added the strait was open. Traders took little comfort from either statement.
“To some extent, the market has muted movement to the daily headlines just due to the amount of noise since June with no real results,” said Darrell Fletcher, managing director of commodities at Bannockburn Capital Markets. Covert shipments slipping through the strait have exceeded expectations, Fletcher said, adding upward pressure to prices.
Saudi Aramco has resumed oil loadings inside the strait, offering cargoes via ship-to-ship transfers off Fujairah in the UAE, according to shipping data and trade sources. Two Chinese shipping giants have also started collecting cargoes outside the Gulf, easing some supply concerns. Yet vessel traffic through the strait remains in single digits. Tankers with transponders switched off are not included in the tally.
Geopolitical risks widened. Yemen’s Houthis launched missiles they said targeted a Saudi military ship and four escorts in the Red Sea. The United Kingdom Maritime Trade Operations reported a vessel struck by an unknown projectile while leaving the strait, causing engine damage and a crew casualty.
The United Arab Emirates said it detected two ballistic missiles launched from Iran, without immediate comment from Tehran. Separately, four sources told Reuters that Russia is rerouting Kazakhstan’s crude oil exports from the Baltic port of Ust-Luga to the Black Sea port of Novorossiysk. The move frees up Baltic capacity for more Russian barrels while Black Sea shipments face Ukrainian drone risks.
Iran’s stance hinges on US compliance with the June deal. Oman is negotiating a separate agreement to manage the strait, but Trump responded with a threat to bomb Oman—an unusual warning to a longstanding US security partner. “Hence, we see further pain in the near term and upward pressure on oil prices,” said Mohit Kumar, an economist at Jefferies.
With neither side blinking, the market expects continued volatility. For now, the highest settlement since late July serves less as a breakout than a reminder of how fragile the calm remains.
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