August 12, 2026
Oil prices climbed on Wednesday as uncertainty surrounding a potential peace agreement between the United States and Iran raised fresh concerns about global energy supplies.
Brent crude rose by around $0.72 to $89.63 a barrel, while US West Texas Intermediate (WTI) gained about $0.71 to $83.91, extending a broader rally that has taken place as hopes for a rapid diplomatic breakthrough have weakened.
The latest price increases come amid continuing uncertainty over the Strait of Hormuz, one of the world’s most important oil-shipping routes. Iran has indicated that the strait will remain closed unless Washington agrees to conditions including the release of frozen Iranian assets. Shipping traffic through the waterway has fallen sharply compared with levels before the conflict.
Shipping attacks increase fears
Concerns have also intensified following reported attacks on commercial shipping in the Strait of Hormuz and the Bab el-Mandeb Strait. The developments have raised fears that disruptions could spread across key routes used to transport oil and other commodities.
The standoff has created renewed pressure on energy markets, with traders closely watching diplomatic efforts to secure a lasting agreement and restore normal shipping through the region.
Global economy watching closely
A prolonged disruption could have consequences far beyond the Middle East. Higher crude prices can increase transportation and production costs, potentially putting additional pressure on inflation in countries that rely heavily on imported energy.
The US Energy Information Administration has also warned of prolonged disruption to Middle Eastern oil supplies, adding to concerns among traders about how long the current supply constraints could last.
For now, markets remain highly sensitive to every development in US–Iran negotiations. Any breakthrough that allows the Strait of Hormuz to reopen could quickly ease oil prices, while further escalation could send them higher.
