Oil prices gained over $1 on Wednesday, October 21, 2026, as escalating Middle East tensions fuelled fears of supply disruptions, while falling United States crude and product inventories lent support to the market.
Brent crude futures rose $1.61, or 1.5%, to $110.40 per barrel as of 0630 GMT, while US West Texas Intermediate (WTI) crude gained $1.45, or 1.5%, to $99.27 per barrel.
Prices fell in the previous trading session after Iran’s president discussed mediation efforts in a meeting with Pakistan’s army chief in Tehran, though Brent hit a five-month high before easing.
The head of energy research at DBS, Suvro Sarkar, said: “Oil prices have been having a bit of wild ride in the last couple of sessions.
Middle East war: Oil prices hit five-month high at $110 per barrel
“We believe this is a mix of profit taking and optimistic hopes of a Qatar- or Pakistan-brokered deal, countered by the realisation that any deal is still very distant and compounded further by inventory data from the American Petroleum Institute (API), which shows drawdowns continuing in the US for both crude and products.”
Iranian media outlet Nournews reported on Tuesday that Iran told Pakistan’s army chief there would be no talks with Washington until its demands were met, adding that a Qatari delegation had arrived in Tehran.
Maritime security risks are also escalating. Shiptracker Kpler said on Monday that at least 18 vessel attacks were recorded over the past two weeks, while LSEG analysts warned Iran was targeting tankers well beyond the Strait of Hormuz, reaching into the Gulf of Oman and jeopardising Gulf crude loadings and the ship-to-ship transfers supporting regional loadings.
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