Crude Oil Nears $92 A Barrel as Trump Says No Talks With Iran, Strait of Hormuz Tensions Simmer
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Oil prices extended a four-session rally toward $92 a barrel as US-Iran tensions over the Strait of Hormuz showed no signs of easing, with Trump and Tehran trading sharp public statements.
Crude oil prices moved closer to $92 a barrel in early trade on Wednesday, August 19, as tensions in the Middle East remained elevated after US President Donald Trump said Washington was not in talks with Iran, while maintaining that the Strait of Hormuz remains open for shipping.
Brent crude futures rose 57 cents, or 0.6%, to $91.59 a barrel, while US West Texas Intermediate (WTI) crude gained 62 cents to $85.56 a barrel.
Both benchmarks had gained more than 5% last week following attacks on tankers operated by Abu Dhabi National Oil Company in the Strait of Hormuz and a strike on a Saudi Aramco refinery.
Why Are Oil Prices Rising Today?
A temporary ceasefire agreement between Iran and the United States lapsed on Monday, adding to uncertainty over the conflict and the outlook for oil supplies.
A senior Iranian official told Reuters that Tehran was moving towards a "fully offensive" military posture in response to the diplomatic stalemate. No fresh strikes by either side were reported on Tuesday.
Trump has continued to assert US control over the Strait of Hormuz. He also shared an AI-generated image depicting the waterway as "NEW US Territory", drawing a strong response from Tehran.
Iranian Deputy Foreign Minister Kazem Gharibabadi criticised Trump's remarks in a post on X, saying Tehran would challenge the US position on the strategic waterway.
Trump, meanwhile, said the strait remained open and that oil prices were easing, while warning that Iran was under significant economic and military pressure.
"We control it with the blockade. I like the idea of declaring it a territory. We have total control over the Strait," Trump said.
The latest developments have reduced hopes of an early resumption of peace talks and a normalisation of tanker traffic through the Strait of Hormuz. The waterway is a key route for global energy shipments, making any prolonged disruption a major risk for crude oil markets.
Crude Oil Price: Key Levels to Watch
According to Kotak Neo Research, MCX Crude Oil August futures have support at ₹8,095 and ₹8,036, while resistance is placed at ₹8,287 and ₹8,346.
The research desk maintains a sideways-to-bullish bias on MCX Crude Oil August futures, with a broader trading range of ₹8,075-₹8,480.
Kotak Neo Research noted that crude oil had extended its gains for a fourth consecutive session, with Brent trading near $92 a barrel and WTI above $84.5 as markets continued to price in prolonged geopolitical tensions rather than an immediate physical supply disruption.
A sustained move above $92 a barrel could strengthen the upside momentum, while an unexpected de-escalation in the Middle East remains the key downside risk, according to the research desk.
On the inventory front, API data showed US crude inventories fell by 328,000 barrels in the week ended August 14. Distillate inventories declined by 2.8 million barrels, while gasoline stocks increased by 1 million barrels.
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Rochelle Britto is a business journalist with 8+ years of experience in financial journalism. She covers equity markets, corporate earnings, IPOs, commodities and the economy.
As a reporter with leading business publications, she has tracked financial markets and covered sectors including banking and financial services, retail, consumer goods, advertising and e-commerce.
Outside work, she enjoys travelling, discovering local cultures and spending time in nature.
