Uncertainty over Strait of Hormuz keeps global oil prices elevated

By the Editorial Team · Thursday, August 20, 2026

Oil prices held near three-week highs as uncertainty persists over safe shipping through the Strait of Hormuz amid rising tensions between the U.S. and Iran. This instability sustains a risk premium in global oil markets, highlighting concerns that supply disruptions could worsen if regional conflict escalates.

Oil prices remained near their highest levels in three weeks on Wednesday amid ongoing uncertainty over shipping through the Strait of Hormuz and other supply disruptions affecting the market.

Brent crude futures were trading modestly higher by 18 cents, or 0.2%, at $91.20 per barrel by 1302 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 16 cents, or 0.19%, at $85.10 per barrel. Earlier in the session, Brent reached its highest price since July 30, while WTI peaked at its highest since July 31 before easing off gains.

The market is navigating heightened geopolitical tensions following the expiration of a temporary ceasefire agreement on Monday. Iran and the United States continue to present conflicting narratives regarding access to the Strait of Hormuz, a critical chokepoint responsible for the transit of about one-fifth of global oil and liquefied natural gas supplies prior to the outbreak of the US-Israeli conflict with Iran in late February.

On Tuesday, U.S. President Donald Trump stated that no negotiations were underway with Iran and asserted that the Strait of Hormuz remained open. This contradicted Iranian officials, who maintained that the waterway was effectively closed. Additionally, a senior Iranian official told Reuters that Tehran is transitioning toward a "fully offensive" military posture as diplomatic talks stall. Despite these statements, no active military strikes were reported from either side on Tuesday.

Market analysts emphasize that the persistent uncertainty surrounding navigational safety in the Strait is contributing to a sustained geopolitical risk premium embedded in oil prices. Tim Waters, chief market analyst at KCM, noted that shipping volumes continue to operate well below normal levels, reflecting low confidence in the safe passage of vessels through the strategic passage.

The ongoing disruptions and risks associated with the Strait of Hormuz, along with broader supply challenges, are keeping global oil markets on edge and prices elevated amid concerns over potential further escalations in the region.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.