Oil prices extended their gains for a fourth consecutive session on Wednesday, August 19, 2026, as uncertainty over the status of the Strait of Hormuz heightened concerns about disruptions to global crude supplies.
Brent crude futures rose by 42 cents, or 0.5 per cent, to $91.44 a barrel by 0630 GMT, while U.S. West Texas Intermediate (WTI) crude gained 51 cents, or 0.6 per cent, to $85.45 a barrel.
Both benchmarks had closed at their highest levels in more than three weeks on Tuesday, following growing doubts over the prospects of a breakthrough in peace talks between the United States and Iran.
Market sentiment remained cautious amid conflicting statements from Washington and Tehran over the reopening of the Strait of Hormuz, one of the world’s most important oil shipping routes.
U.S. President Donald Trump said on Tuesday that no negotiations were taking place with Iran and maintained that the strategic waterway was open to maritime traffic. Iran, however, maintained that the strait remained closed to shipping.
The uncertainty has continued to affect shipping activity, with vessel-tracking data indicating that many shipowners were still avoiding the route over security concerns.
Although a temporary ceasefire expired on Monday, there were no reports of renewed military strikes on Tuesday. However, a senior Iranian official told Reuters that Tehran was preparing a response amid the diplomatic stalemate.
Senior oil market analyst at Sparta Commodities, June Goh, said continued threats from Iran and the Houthis around the Strait of Hormuz and the Bab el-Mandeb Strait were likely to support oil prices in the near term.
Goh, however, noted that Gulf oil producers were increasingly using alternative export routes through the Gulf of Oman, which could help maintain crude shipments if the alternative routes remain operational.
Meanwhile, Iraq’s cabinet has approved measures allowing the country to export crude through specialised international and local companies using multiple export outlets in a move aimed at reducing its dependence on the Strait of Hormuz.
According to a government statement, the new export arrangement will commence on September 1 and remain in effect for an initial three-month period.
The developments underscore growing efforts by major oil producers to diversify export routes as uncertainty surrounding the vital waterway continues to pose risks to global energy supplies.
