Global Finance News
18 Aug 2026, 09:06
Brent Crude Rises Above $91 as U.S.-Iran Tensions Renew Supply Fears
Brent crude oil extended its advance on Tuesday, climbing above $91 per barrel as fading hopes for a U.S.-Iran peace agreement and continued disruption in the Strait of Hormuz increased concerns about global energy supplies.
Brent crude futures were trading around $91.32 per barrel in early trading, up approximately 0.5%. The benchmark briefly approached $91.75 during the session after settling 2.65% higher at $90.87 on Monday.
U.S.-Iran Diplomacy Stalls
The latest move follows a deterioration in relations between Washington and Tehran. Iran said it would shift to a “fully offensive” military posture after negotiations toward a permanent end to the conflict stalled, while the U.S. ruled out extending the temporary ceasefire agreement.
The breakdown in diplomacy has increased concerns that disruptions around the Strait of Hormuz could persist. Shipping activity remains extremely limited.
Supply Risk Keeps Brent Above $90
The geopolitical risk premium has returned rapidly to the oil market. Brent has now risen for a third consecutive session, while restricted tanker traffic and uncertainty over the duration of the Middle East conflict continue to raise concerns about the availability and transportation cost of regional crude supplies.
For oil markets, the Strait of Hormuz remains the critical factor. A diplomatic breakthrough that restores tanker traffic could remove part of the current risk premium, while further military escalation or prolonged shipping disruption could keep Brent elevated and increase the possibility of another move toward $100 per barrel.
Brent crude oil extended its advance on Tuesday, climbing above $91 per barrel as fading hopes for a U.S.-Iran peace agreement and continued disruption in the Strait of Hormuz increased concerns about global energy supplies.
Brent crude futures were trading around $91.32 per barrel in early trading, up approximately 0.5%. The benchmark briefly approached $91.75 during the session after settling 2.65% higher at $90.87 on Monday.
U.S.-Iran Diplomacy Stalls
The latest move follows a deterioration in relations between Washington and Tehran. Iran said it would shift to a “fully offensive” military posture after negotiations toward a permanent end to the conflict stalled, while the U.S. ruled out extending the temporary ceasefire agreement.
The breakdown in diplomacy has increased concerns that disruptions around the Strait of Hormuz could persist. Shipping activity remains extremely limited.
Supply Risk Keeps Brent Above $90
The geopolitical risk premium has returned rapidly to the oil market. Brent has now risen for a third consecutive session, while restricted tanker traffic and uncertainty over the duration of the Middle East conflict continue to raise concerns about the availability and transportation cost of regional crude supplies.
For oil markets, the Strait of Hormuz remains the critical factor. A diplomatic breakthrough that restores tanker traffic could remove part of the current risk premium, while further military escalation or prolonged shipping disruption could keep Brent elevated and increase the possibility of another move toward $100 per barrel.
