Oil prices rise as Hormuz export uncertainty deepens

Oil prices rose for a fourth consecutive session on Wednesday, August 19, 2026, as uncertainty over the status of the Strait of Hormuz continued to fuel concerns about global crude supplies.

Brent crude futures gained 42 cents, or 0.5 per cent, to trade at $91.44 per barrel by 0630 GMT, while U.S. West Texas Intermediate (WTI) crude advanced 51 cents, or 0.6 per cent, to $85.45 per barrel.

Both benchmark contracts had closed at their highest levels in more than three weeks on Tuesday after hopes of a breakthrough in United States-Iran peace deal weakened.

Market sentiment remained cautious following conflicting statements from Washington and Tehran over the reopening of the Strait of Hormuz, a vital global oil shipping route.

U.S. President Donald Trump said on Tuesday that no negotiations were underway with Iran and insisted the strategic waterway was open to maritime traffic. His comments contradicted Iran’s position that the strait remained closed to shipping.

Although a temporary ceasefire expired on Monday, there were no reports of renewed military strikes on Tuesday. However, a senior Iranian official told Reuters that Tehran was preparing to respond amid the diplomatic deadlock.

Shipping activity through the Strait of Hormuz slowed further, with vessel-tracking data showing that many shipowners continued to avoid the route due to uncertainty over its security.

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The Senior Oil Market Analyst at Sparta Commodities, June Goh, said persistent threats from Iran and the Houthis in the Strait of Hormuz and the Bab el-Mandeb Strait were keeping oil prices supported in the near term.

However, Goh noted that Gulf oil producers were increasingly turning to alternative export routes through the Gulf of Oman, a move that could help sustain crude exports if maintained.

Meanwhile, Iraq’s cabinet has approved new measures to export its crude oil through specialised international and local companies using multiple export outlets, reducing dependence on the Strait of Hormuz.

According to a statement issued by the government, the new export arrangement will take effect on September 1 and remain in place for an initial period of three months.