Oil: Hormuz conflict keeps prices elevated – BNY

FXStreetAug 18, 2026 11:35 AM

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Geoff Yu at BNY notes Brent crude briefly rose above $91.85 per barrel, its highest in over three weeks, as hopes for a rapid reopening of the Strait of Hormuz faded. President Trump’s refusal to revive the U.S.–Iran truce and ongoing shipping disruptions leave Oil exposed to renewed escalation and prolonged supply concerns, supporting Brent, WTI and Middle Eastern benchmarks.

Strait of Hormuz standoff sustains risk

"Brent crude rose as much as 1.1% to $91.85/bbl on Tuesday, its highest level in more than three weeks, as hopes for a rapid reopening of the Strait of Hormuz faded. President Trump said he will not seek to revive the expired U.S.–Iran truce, leaving the conflict and control of the vital shipping route unresolved. Washington is demanding unrestricted passage through the strait, while Iran says traffic should be managed jointly with Oman."

"Shipping activity remains heavily disrupted and fresh attacks near the strait have reinforced supply concerns. Trump said U.S. leverage over Iran remains substantial and claimed back channels are open, though Tehran disputed this. The unresolved standoff keeps oil vulnerable to renewed escalation and prolonged disruption."

"Persistent Middle East tensions are keeping crude elevated, adding another supply-driven inflation risk to already stretched long-end markets."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

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