Oil Price Today, August 19, 2026: WTI Nears $86 as Hormuz Attacks Revive Supply Fears

Key Takeaways

• WTI climbed to $85.70 and Brent reached $91.71 as crude advanced for a fourth straight trading session.
• Renewed ship attacks and conflicting claims about whether the Strait of Hormuz is open are restoring a geopolitical risk premium.
• Wider gasoline and diesel crack spreads are increasing concerns that the oil supply shock could feed into transport costs and inflation.

Oil Prices Extend Their Four-Day Rally

On August 19, oil prices continued to rise for the fourth consecutive session, with West Texas Intermediate (WTI) crude increasing by 0.9% to $85.70 per barrel and Brent crude gaining 0.8% to $91.71. This surge followed renewed attacks on shipping and conflicting reports regarding the status of the Strait of Hormuz, heightening fears of prolonged supply disruptions.

Earlier, WTI had fluctuated between $84.58 and $85.31 before climbing higher. Both benchmarks had closed the previous session at their highest levels in over three weeks, as optimism surrounding a potential US-Iran peace agreement diminished.

Geopolitical Tensions and Supply Risks

The market's sentiment shifted dramatically after the expiration of a temporary ceasefire between the US and Iran, with no progress towards a permanent agreement. US President Donald Trump stated that there were no ongoing talks with Iran and confirmed that the Strait of Hormuz was open, while Iranian officials claimed the waterway would remain closed until the US met specific conditions.

Security concerns escalated following reports of Iranian missile launches towards maritime traffic near the Strait of Hormuz, prompting heightened caution among shipping operators. The number of vessels passing through the strait has drastically decreased, with only two tracked vessels on August 14 compared to over 130 daily before the conflict began.

UAE Suspends Trade with Iran

In response to the missile incidents, the UAE suspended all trade and financial transactions with Iran. This decision, while not directly removing oil from the market, is expected to reinforce the geopolitical premium and complicate regional de-escalation efforts.

Rising Crack Spreads and Inflation Concerns

In addition to crude prices, the widening gasoline and diesel crack spreads indicate tight supplies of refined petroleum products. The US Energy Information Administration anticipates that these elevated crack spreads will persist through the end of 2026, driven by reduced Russian exports and disruptions in Saudi Arabia and Kuwait.

Higher fuel prices could lead to increased transport and industrial costs, potentially impacting inflation expectations and complicating monetary policy considerations.

Alternative Oil Export Routes

To mitigate the impact of the Strait of Hormuz disruptions, Gulf producers are exploring alternative export routes. Saudi Arabia is utilizing its East-West pipeline, while the UAE is exporting oil through Fujairah. However, these alternative routes cannot fully compensate for the significant volume typically transported through Hormuz.

Future Price Movements

Market attention will likely remain focused on tanker movements, potential attacks, and any shifts in diplomatic relations between the US and Iran. The upcoming US inventory data may also influence price movements, with expectations of a crude draw of approximately 600,000 barrels for the week ending August 14.

WTI is approaching a critical psychological level of $86, while Brent nears $92. The ability of oil prices to maintain these levels will depend largely on physical supply conditions rather than solely on diplomatic developments.