Oil prices were trading in relatively stable territory at the start of trading on Thursday, August 20, 2026, as investors weighed prospects related to the war between the United States and Iran as well as persistent uncertainties about navigation safety in the Strait of Hormuz.
Brent at $91.97 a barrel
Around 04:26 GMT, Brent futures for October delivery rose by 35 cents, or 0.38%, to $91.97 per barrel.
U.S. West Texas Intermediate (WTI) futures for September delivery gained, for their part, 15 cents, or 0.17%, to reach $85.98 per barrel.
The WTI contract for October delivery, now the most traded, advanced by 14 cents, or 0.2%, to $84.53 per barrel.
The two oil benchmarks had risen on Wednesday for a fourth straight session, closing at their highest levels since July 24. The U.S. contract for September delivery is set to expire this Thursday.
The market cushioned by tensions in the Middle East
Hiroyuki Kikukawa, chief analyst at Nissan Securities Investment, says prices remain supported by the persistent tensions in the region.
“Oil prices have stayed high, the market being supported by sporadic attacks in the Middle East, but there are no new catalysts in the absence of a major escalation,” he said.
According to him, the market is likely to maintain a gradually rising trend due to uncertainties surrounding talks to end the war and disruptions involving notably the United Arab Emirates, Oman, and Iran.
The Strait of Hormuz at the heart of concerns
The decision by the United Arab Emirates to suspend, until further notice, all financial and economic transactions with Iran has once again highlighted the tensions between the two countries.
U.S. President Donald Trump had said on Tuesday that no negotiations were currently underway with Iran and that the Strait of Hormuz was open. Tehran, however, asserts that this strategic maritime route remains closed.
Data published on Wednesday also showed a slowdown in maritime traffic through the Strait of Hormuz. Most shippers continue to avoid the passage, due to the uncertainty surrounding navigation conditions since its closure in the context of the war with Iran.
Surprise rise in U.S. crude stocks
In the U.S. market, the latest stock data also drew investors’ attention.
The U.S. Energy Information Administration (EIA) reported on Wednesday an increase in crude oil and gasoline stocks, while stocks of distillates declined over the past week.
Crude stocks rose by 4.4 million barrels in the week ended August 14, while analysts had forecast a drop of about 600,000 barrels.
This larger-than-expected rise could, in the short term, cap the rally in prices despite ongoing concerns about supply and navigation in one of the world’s main energy transit routes.
