Brent Rises Nearly to $92 Due to Breakdown in Negotiations Over the Strait of Hormuz
Oil prices have been rising for the third consecutive session amid deteriorating prospects for an agreement between the U.S. and Iran.
On August 18, Brent futures rose by about 1% to $91.76 per barrel, reaching a high not seen since July 30. Iran announced a shift to a more "offensive" military stance, while the U.S. declined to extend a temporary ceasefire.
At the same time, negotiations to restore normal traffic through the Strait of Hormuz have effectively stalled. Reuters notes that the number of passing vessels remains extremely low, and analysts suggest an oil price range of $80–100 per barrel as long as uncertainty persists.
This news relates to the markets: "Will Brent hit $100 by the end of 2026?" and "Will the Strait of Hormuz return to normal by September 30?" Currently, the situation is pushing oil prices closer to $100 while reducing the chances of a quick normalization of the strait.
